The 20-year-old land lease operator, with a pipeline of over 2,500 homes to be developed, has increased its debt facility with two more major Australian banks now backing co-founder and Managing Director James Kelly’s plans.
Westpac, which sponsors DCM Group’s Conversations at the Wharf series, and ANZ have joined existing lenders NAB, CBA and HSBC in lending Lifestyle Communities $700 million (it had been $525 million).
James said the deal set up Lifestyle Communities for the next five years and beyond but alluded to future challenges being caused by the crisis in the cost of living.
“The rapidly rising interest rate environment and macro-economic conditions has had an effect on consumer sentiment and this has resulted in some customers taking longer to list their family home for sale,” he stated.
“As a result, settlement for FY24 will be even more heavily weighted to the second half as some of the anticipated settlement from the five projects currently settling in the first half have pushed out to the second half. This will add to the three new projects commencing settlements for the first time in the second half.”
Lifestyle Communities has purchased four land sites since June 2023:
- Clifton Springs, a coastal town on Victoria’s Bellarine Peninsula;
- Yarrawonga, on the south bank of the Murray River in Victoria; and
- Inverloch and Clyde in October.
The ASX-listed developer now has a total of 30 communities for Over 55s in operation, being built or announced.
