Stockland buys 12 masterplanned communities from Lendlease for $1 billion
ASX-listed developer Stockland has spent just over $1 billion buying 12 masterplanned communities from Lendlease.
The communities will be part of the Stockland Residential Communities Partnership (SRCP) with Thai real estate development company Supalai. Stockland will hold a 50.1% interest in SRCP, with Supalai holding a 49.9% interest.
They've secured masterplans across Victoria, Queensland and New South Wales, totalling over 27,000 lots. The biggest acquisition is by far Yarrabilba in Queensland, near Logan, which has 10,400 lots.
The Yarrabilba masterplan. Image credit: Lendlease
Stockland Managing Director and Chief Executive Officer, Tarun Gupta, said the acquisition represents a step change in the reshaping Stockland's portfolio.
"[It] accelerates the execution of our strategy by increasing our capital allocation towards residential sectors while scaling our capital partnership platform and generating new sources of recurring income," Gupta said.
“We are pleased to be forming the Stockland Residential Communities Partnership with our existing partner Supalai, who has a strong track record of investing in residential developments across Australia, and is aligned with our strategic ambitions. SRCP achieves immediate scale with this acquisition, and we are excited to further develop the partnership alongside Supalai.”
Supalai Public Company Limited Chairman and CEO, Dr Prateep Tangmatitham said the investment further demonstrates their confidence in the underlying drivers of the market and provides them with exposure to a high quality, well-located portfolio of communities in partnership with one of Australia’s leading residential developers.
The recent acquisitions take Stockland's landbank to around 95,600 lots. They have the potential to increase settlement numbers to around 2,500 lots per annum.
| Project Number | Project Name | State | Yield |
|---|---|---|---|
| 1 | Figtree Hill | NSW | ~1,320 |
| 2 | Calderwood Valley | NSW | ~2,780 |
| 3 | Springfield Rise | QLD | ~1,160 |
| 4 | Yarrabilba | QLD | ~10,400 |
| 5 | Shoreline | QLD | ~2,760 |
| 6 | Kinma Valley | QLD | ~2,300 |
| 7 | Atherstone | VIC | ~1,710 |
| 8 | Aurora | VIC | ~1,110 |
| 9 | Harpley | VIC | ~1,720 |
| 10 | Averley | VIC | ~1,370 |
| 11 | Alkimos Beach | WA | ~760 |
| 12 | Alkimos Vista | WA | ~250 |
| Total | ~27,600 |
Stockland CEO of Development, Andrew Whitson said the fundamentals of the residential market in Australia remain compelling, with ongoing land supply constraints amid strong population growth.
"This acquisition has been secured on attractive terms, with active projects that are well positioned to ramp up development activity into a potential recovery in the residential cycle. The size and scale of the acquired projects also present potential development opportunities in adjacent uses, including land lease communities and community real estate assets such as childcare and healthcare centres.”
Stockland recently released one of the last residential opportunities at their Redcliffe Peninsula masterplan Newport.