STOCKLAND has been granted approval for its $1.3 billion acquisition of 12 out of Lendlease’s 16 masterplanned communities, spanning New South Wales, Queensland, Victoria, and Western Australia, signalling a major shift in the Australian property sector.
Stockland, in partnership with Thai developer Supalai, is purchasing the portfolio of housing estates. The deal, first announced in December 2023, received approval following an extensive review by the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB).
The transaction includes major developments such as the Yarrabilba community in Queensland, which features 15,600 lots. This expansion is expected to increase housing availability and meet growing demand in key regions.
The ACCC had initially raised concerns over competition in some regions, particularly in the Illawarra area of New South Wales. Stockland was set to acquire two major developments in this region: its own Forest Reach estate and Lendlease’s Calderwood Valley project. ACCC commissioner Philip Williams noted that this could have resulted in higher prices, delayed supply, or diminished quality of housing in the region.
“Without the divestment, the proposed acquisition would bring together the two largest master-planned community projects in the already concentrated Illawarra market,” Mr Williams said.
To resolve these concerns, Stockland agreed to sell its Forest Reach project to maintain competition in the region.
“The ACCC considers that the divestiture undertaking given by Stockland addresses the competition issues that would arise from Stockland owning both Forest Reach and having an interest in Lendlease’s nearby Calderwood Valley project,” Dr Williams said.
For Lendlease, the sale is part of a broader strategy to restructure the company under CEO Tony Lombardo.
Lendlease aims to refocus on more profitable high-rise projects in Australian cities, reducing its global operations and workforce in the process. This divestment will also help Lendlease meet its $2.8 billion asset disposal target.
For Stockland, this acquisition provides an opportunity to expand its presence.
