The long-term value in land lease is evident despite the Australian-based private equity firm PEP withdrawing from its exclusive due diligence to buy Serenitas after a lengthy marketing campaign led by Goldman Sachs, for a reported $906 million. Pacific Equity Partners, a newcomer to the sector, was unable to raise the funds through its Secure Assets Fund, The Australian reported.

The Secure Asset Fund, which targets investments valued between $50 million to $1 billion, is currently raising funds. The Weekly SOURCE understands the figure being sought by Serenitas is considerably more.

Serenitas was formed when GIC and Tasman Capital Partners, which Rob Co-Founded and is Managing Partner, bought WA-based National Lifestyle Villages in 2018 from Navis Capital and Blackstone.

Rob advised The Weekly SOURCE Serenitas is growing rapidly.

“We had a record 6 months to 31/12/22 with Serenitas' new home settlements exceeding each of Gemlife, INA (Ingenia), LIC (Lifestyle Communities) and Stockland/Halcyon. The residential market is looking ok for now but interest rates are not helpful; immigration and lack of new construction is underwriting a floor in demand,” he said.

Serenitas now owns and operates 28 LLCs and is developing three new communities under its Thyme brand, as Rob outlined to The Weekly SOURCE in August last year.