Racing at Pakenham is coming to an end after a deal was reached between the Pakenham Racing Club and property developers.

It was somewhat of a formality with the Pakenham track sitting in the south-eastern outer suburbs of Melbourne, a major residential growth area putting huge value on the land for new real estate developments.

Chief executive of the Pakenham Racing Club Michael Hodge said the club sold the track in a deal valued at $38 million.

He said that the signing of the deal gave the club the funds required to go ahead with their scheme to construct a brand new facility in the suburb of Tynong.

“We are very happy about the sale,” he said.

“It means we can fund what we have planned, without compromise. While racing begins at the new course in August 2013, we now expect to vacate the current site in March 2013.”

The new Tynong site will also have training facilities as well as a housing component for the use of trainers and stable staff at a cost of $44 million for the entire complex.

Fittingly the final event expected to be run at Parkenham will be the 2013 Pakenham Cup Day.