Expect a rapid growth in Stockland’s land lease portfolio as it points to “future year margins to increase due to price growth, increasing scale and management fees, tempered by upward cost pressures”.
In releasing its report of the third quarter of the 2022 financial year to the ASX, the Sydney-based diversified Australian property development company said its FY22 target of 220-240 home sales is maintained despite the impact of extreme weather conditions in southeast Queensland on supply chain and production.
It made 94 net sales in the third quarter of the 2022 financial year and said the sale price was up 4.3% on 2Q22.
Stockland paid $620 million for Queensland-based land lease owner operator Halcyon in July last year, giving it 3,800 lots, two-thirds of which were still in planning or development.
CEO Tarun Gupta (pictured) announced in February this year it has established a new Stockland Residential Rental Partnership (SRRP) with Japanese real estate investor Mitsubishi Estate Asia to drive the growth of its land lease business and expand its third-party capital platform. It told the ASX in its 3Q22 the partnership will begin late this year.
“This partnership will enable us to improve our market position by creating opportunities to scale up our Land Lease Communities business with a high-quality capital partner via the delivery of the $4 billion secured development pipeline,” Mr Gupta said in announcing the SRRP.
The following month, Stockland paid $47.5 million for a 13ha site (marketed as St Germain Village) at Clyde North, 35km southwest of Melbourne’s CBD. The proposed new Stockland Halcyon community will be within the St Germain Estate and adjacent to the future St Germain Town Centre.
“Subject to planning approvals we anticipate delivering approximately 278 home sites with a clubhouse and recreational facilities,” said Kingsley Andrew, Executive General Manager of Land Lease Communities at Stockland.
Stockland Halcyon has two LLC projects in close proximity to the proposed community: Stockland Halcyon Minta in Berwick, which is under development, and Stockland Halcyon Evergreen in Clyde, which is in the planning stage.
Melbourne-based Lifestyle Communities is constructing Lifestyle Meridian at Clyde North (274 homes) to add to its existing communities in Melbourne’s southeast.
