has announced that it has entered into binding agreements to acquire Queensland based Halcyon Group’s land lease communities business for $620 million plus transaction costs and subject to certain adjustments at completion.
Stockland is a diversified Australian property development company with business in shopping centres, housing estates, industrial estates and retirement villages.
The transaction includes the acquisition of 3,800 sites across 13 land lease communities, made up of six established land lease communities, four communities in development and three projects in planning.
Stockland will welcome over 2,500 new customers to its portfolio as part of the acquisition, as well as a team of over 100 people with in-depth sector experience which will strengthen Stockland’s existing land lease capabilities.
Stockland managing director and CEO, Tarun Gupta said: “This acquisition is in line with our stated strategy to grow our land lease communities and will increase the size of our portfolio to 7,800 sites. Land lease communities deliver attractive returns as the demand for high quality, affordable housing solutions grows."
Stockland will fund 100 per cent of the acquisition price and associated costs from existing liquidity. The acquisition price will be paid in two tranches. The first tranche will be paid upon completion of the transaction in mid August 2021 with the balance of $310 million deferred until July 2022.
Halcyon managing director, Dr Bevan Geissmann, said, “we’re really delighted that Stockland recognises the strengths in Halcyon’s brand and capability and we welcome its commitment to our people and customers."
As reported in Stockland’s first half results this year, the land lease business enjoys strong interest from the over-50s demographic looking for low maintenance, secure and active lifestyle options with access to high quality facilities.
Shares in Stockland (ASX:SGP)
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