The developer behind the first stage of Denman Prospect has increased its presence in the growing region with the finalisation of the purchase of the suburb’s next stage for $135.85 million from the ACT Government.

Consisting of land for up to 1200 dwellings, this will be the second stage of the Molonglo Valley suburb that will eventually contain about 4500 dwellings.

Capital Estate Development was able to negotiate for Denman Prospect stage two as part of its successful 2015 tender for stage one.

Land Development Agency acting chief executive officer Neil Bulless said the negotiated outcome for the sale of stage two was a good result for the Territory.

“Not only is this a great financial result for the government but there are benefits in having the same developer continue from the first to second stages of this important development,” Mr Bulless said.

“Having won the right through its successful tender for stage one to negotiate for this second stage, Capital Estate Developments will be able to continue the good work it is doing in delivering housing options for Canberrans in Denman Prospect.

“Having the same developer continue on to the second stage of this suburb will allow for a consistent approach to design, co-ordination and efficiency of delivery.

“The government has also continued its strong commitment to the delivery of affordable housing with a requirement for 20 per cent affordable housing in stage two.”

Denman Prospect stage one, which was sold to Capital Estate Developments in 2015 for $241.3 million, consisted of land for about 1000 single-residential dwellings and up to 1500 multi-unit dwellings.

Most of the 1200 dwellings in stage two will be single residential. The stage will also include a community park, a school site and associated playing fields.

Construction of stage two is expected to start in 2018 and take about five years.  The first land releases in stage two are expected in 2019.