Stockland, the country’s largest listed residential developer, has agreed today to sell its Forest Reach master planned community project in Huntley, 18km from Wollongong, to allow Thailand-based partner Supalai and itself to buy Lendlease's 12 master planned communities, totalling about 27,600 lots, for $1.1 billion.
Stockland Forest Reach was to include a Stockland Halcyon land lease community for over 60s.
“Without the divestment, the proposed acquisition would bring together the two largest masterplanned community projects in the already concentrated Illawarra market,” ACCC Commissioner Dr Philip Williams said.
“This could have resulted in increased prices, delayed supply, or reduced quality of housing lots in the Illawarra region, to the detriment of prospective homeowners.”
The ACCC’s investigation found that there were few alternative masterplanned community projects to constrain Stockland in the Illawarra and that prospective entrants faced challenges, including delays in the availability of essential infrastructure such as sewer and water services.
The Lendlease deal, according to Stockland CEO - Development, Andrew Whitson, includes up to nine future land lease communities totalling 2,500 home sites. Stockland is already destined to be the leading land lease community provider for people aged over 55 and this will strengthen its landbank.
Lendlease has 16 masterplanned community projects in NSW, Queensland, Victoria, and Western Australia, 12 of which Stockland and Supalai will buy.
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