The Sydney-based developer has bought a 26ha farm in Curlewis, 17km east of Geelong’s CBD, for a new masterplanned 325-home land lease community.

 

This comes nine month after Stockland spent $18 million for a 12.7ha block, in Armstrong Creek, for an over-50s land lease community of 250 homes.

 

Stockland's Curlewis site will also feature 100 residential homes.

 

“The greater Geelong region was experiencing strong demand from buyers attracted to the coastal lifestyle and proximity to Geelong,” Stockland Halcyon Communities executive general manager, Richard Rydderch said.

 

“The Bellarine market has enjoyed substantial price growth as more people see it as an alternative to Melbourne.

 

“There has been significant infrastructure spend in the region including proposals for a new ferry terminal, significant road upgrades and completion of the Geelong Convention and Exhibition Centre.

 

“This acquisition gives Stockland a unique opportunity to add to our pipeline of 9000 LLC sites across Australia and build on our current exposure in the Greater Geelong and Bellarine Peninsula markets,” he added.

 

In Melbourne’s southeast, Stockland owns land for land lease communities at Berwick, Clyde and Clyde North, for which it paid $47.4m in March.

 

Stockland aims to be a formidable force in land lease communities. In February, CEO Tarun Gupta announced it had established a new Stockland Residential Rental Partnership (SRRP) with Japanese real estate investor Mitsubishi Estate Asia to drive the growth of its land lease business and expand its third-party capital platform. That deal does not come into effect until late this year.

 

In addition, Stockland’s purchase of the Queensland operator Halcyon has given it 3,800 lots, two-thirds of which were still in planning or development.

 

Under the land lease model, residents own their homes but pay a site rental fee which also covers things like rates and occupant-only facilities, like clubhouses, swimming pools, bowling lawns and tennis courts.