When Tarun Gupta (pictured below) became CEO of property developer Stockland he staked his reputation on developing land lease communities while exiting the retirement village sector.
For the first half year of FY23 the land lease business contributed $38 million (up from $31 million in HY22). Average sale prices per home were up 5% and the 1,944 established home sites were 100% occupied for the six months to 31 December.
Stockland is building 1,130 land lease homes in six communities. It will have seven LLCs in development by the end of the FY24 – five in VIC and two in QLD. It’s total development pipeline is 7,200 land lease homes, which is slightly larger than Ingenia’s total pipeline at 6,450.
The Sydney-based business sold 174 homes in HY23 and transferred Stockland Halcyon Nirimba, QLD (main picture), and Stockland Halcyon Berwick, VIC, into its Stockland Residential Rental Partnership with Mitsubishi Estate Asia, generating cash-backed profit.
It sold 174 homes in the six months and has 452 homes presold.
It is targeting a 22%-27% development operating margin on 350 settlements in FY23.
