Stockland, the nation’s largest residential developer, is launching two massive new land lease communities this month, and its CEO has publicly stated that the business has capital for further growth in the portfolio.
The former Lendlease CFO told the Macquarie Australia Conference in Sydney that Stockland had capital for inorganic growth in logistics and residential, particularly land lease communities.
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, The Weekly SOURCE reported in February.
Stockland already has a pipeline of 7,200 land lease homes with an end value of $5.2 billion. It is developing 1,139 homes and seven communities are expected to be launched by the end of FY24.
To cap it all off, it has 14 land lease development sites in its existing landbank.
In an investor update, Stockland said there is a potential buying window emerging over the near term to also acquire additional sites.
