Development company, Stockland, has formalized plans to build one of the country's largest suburbs located at Melbourne's outer north at Kalkallo with a populations of 30,000.

The project brings the company's total Melbourne projects to more than $US13 billion with four other projects and another in the planning stage. It plans to build a US$4 billion residential projects will include converting the Lockerbie farm site into a 11,500 residential lots in addition to a 85 hectare town center.

"The Victorian market remains a key focus for us, and this acquisition is a clear fit with our 3-R growth strategy of residential communities, retirement living and retail development, " residential division chief executive Mark Hunter told The Australian.

The Lockerbie site is the company's largest individual land sale to be processed following a 31-year call option structure that will acquire land as staged parcels. This strategy will help the company gauge demand as it defers development per stage.

It will take 30 years before the project is fully completed although the Lockerbie land is to be marketed beginning 2014 or early 2015. As a reaction to its added investment, Stockland is lengthening its debt profile by issuing US$150 million medium-term notes maturing in 2016 as well as buying back US$149 million worth of notes expected to mature in 2011 and 2013.

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