Australian industry fund Hostplus and Villawood Properties have been chosen to redevelop the largest racecourse in South Australia, at a cost of A$350m (€223m).

The South Australian Jockey Club (SAJC) selected the pair to transform underutilised trackside land at Adelaide’s Morphettville Racecourse into a mixed-use and residential community.

The A$95bn super fund and developer Villawood will work with the SAJC to redevelop 7.5ha of rezoned land, creating 250 townhouses and low-rise apartments, supported by retail and commercial facilities. Work is expected to start by mid-2024.

The opportunity for Hostplus to partner with Villawood and the SAJC was secured via its mandate with ISPT, a property asset manager, owned by industry super funds. ISPT also manages Hostplus’ co-investment in the A$2bn mixed-use redevelopment of Victoria’s Moonee Valley Racecourse.

Hostplus CEO, David Elia, said: “This is an important project for Hostplus, a fantastic long-term investment opportunity for our members.

“The project also demonstrates our ongoing commitment to investing in the South Australian economy and the creation of more jobs across a range of industry sectors in South Australia.”

Hostplus, one of Australia’s largest super funds, strengthened its ties to South Australia last year following its merger with the state’s public sector pension scheme, SA Statewide Super.

SAJC chairman, Bob Holton, said the partnership, and the funds generated through the redevelopment, will help SAJC build on Morphettville’s legacy and “provide the foundations for a thriving club for our current and future members”.

SAJC CEO, Grant Mayer, said Villawood and Hostplus had a track record for success and investing in high-quality projects.

Villawood CEO, Alan Miller, said: “We believe the Morphettville site is an opportunity to take a long-term development approach, creating another truly unique Adelaide lifestyle destination.”

Villawood Properties recently expanded its presence in South Australia through a multi-billion-dollar portfolio of housing projects.

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