South Melbourne-based Lifestyle Communities has lodged a statement of claim in the Federal Court against the country’s largest residential developer, Stockland, for allegedly infringing on its trademark name – Stockland is using ‘lifestyle communities’ to describe its own land lease locations.
The ASX-listed Lifestyle Communities at the end of FY23 had built and sold 3,549 land lease homes over 20 years, with a portfolio pipeline of 5,912. Stockland has been in the land lease sector for just three years and now has 1,106 land lease homes occupied with 7,100 further homes in its development pipeline, it stated in August.
Stockland moved into the sector at scale with the purchase of Queensland land lease group Halcyon for $620 million in 2021.
“They say ‘Lifestyle Communities’ is two common words’. We say ‘So is Stock Land, but they make a powerful brand’,” Lifestyle Communities Co-Founder and Managing Director James Kelly told The Financial Review. “They are two common words, but they are trademarked and not available for use.
“We’ve dedicated over two decades to building our unique brand, Lifestyle Communities and don’t understand why Stockland continues to use our brand in its marketing when there are any number of alternative options for them to use, including their own brand.”
Lifestyle Communities claims to have helped Stockland get into the land lease sector.
“When Stockland initially entered the market, we extended a warm welcome by giving their team multiple tours of our communities and providing valuable advice and support,” James said. “We were excited by the prospect of operators like Stockland helping to grow the land lease sector while maintaining the highest levels of governance and care for customers.”
“All we have ever asked in return is for Stockland to not use our brand. Lifestyle Communities and Halcyon Communities have coexisted for almost 20 years prior to Stockland’s ownership and we have never had this issue with Halcyon before. It is perplexing to us why Stockland insist on utilising our brand.“
A Stockland spokeswoman said with the matter before the Federal Court it would not make any comment on Lifestyle Communities claim.
The SOURCE: With the land lease sector burgeoning, let's hope commonsense prevails
