Sand Quarry

Fast Facts

Purchase Price Range: Acquisition costs between $120–$140 million.
Future Realisable Value: Estimated future value of $640 million post-development.
Revenue Generation: Projected annual revenue from royalties ($12.6 million) and lease ($1 million).
Government Support: Victorian government is promoting industrial land relocation to regional areas, enhancing growth potential.
Quarry Life Span: Operational lifespan of 10-20 years, based on demand and extraction rate.

Operational sand quarry

Acuity Development Group is actively negotiating the acquisition of an operational sand quarry in Victoria with plans for its future transformation into a high-value development site.

Purchase Price: $120–$140 million.
Projected Future Value: Approximately $640 million.

This quarry is situated within one of Victoria's most rapidly expanding regions, meeting the increasing demand for construction materials while creating opportunities for future rezoning and development.

Strategic Growth Region

Serves a combined population of over 90,000, with substantial infrastructure development needed to support growth.
Median age of the population: 33 years (split evenly between genders).
Affordable housing market, with median house prices around $750,000.

Government and Business Support:

The Victorian government promotes industrial relocations to regional areas, offering support to large businesses to expand and provide economic and employment benefits.
This aligns with infrastructure demands and the region’s growth trajectory.

Quarry Life Span:

10–20 years, depending on extraction rates and construction industry demand.
Produces a premium-grade product, favored across Victoria.

The Opportunity

The quarry offers immediate revenue potential and a phased approach to maximize its long-term value:

Purchase and Hold

Revenue Streams: ~$12.6 million from royalties and $1 million per annum in lease income.
Rezoning Stages:

Years 1–5: Partial rezones and value uplifts to cover vendor payments.
Years 5–10: Staged subdivision and pre-sales based on demand.

Exit Strategies

Incremental Value Growth: Sell as land values rise due to regional development.
Rezoning Opportunities:

Sell to developers for industrial land banking.
Rezone to residential and sell to housing developers.

Benefits

Ongoing Income Streams: Generates revenue during the extraction phase, covering holding costs.
Demand-Driven Development: Positioned to serve regional growth and infrastructure requirements.
Government Support: Collaboration with state authorities to align zoning and planning with future urban needs.
High Development Margins: Significant profit potential through rezoning and staged land sales.