In November 2016, Adrian Puljich, his father Peter and Singapore diversified company Thakral Corporation launched GemLife with its first land lease community aimed at Baby Boomers on Bribie Island, Moreton Bay, Queensland.
Peter already had more than 30 years of owning and running Living Gems which, at the time, had completed five resorts and managed 1,171 home sites.
"GemLife’s retirement homes are targeted at the "baby boomer" housing market in Australia which is growing rapidly with the over 65-year-old cohort the fastest growing age group growing at 3.6 per cent per year. The housing units are directed at owner-occupiers with a price range of between A$360,000 and A$575,000," Thakral said in December 2016.
Today, GemLife has 12 communities in operation, with prices at its latest resort Moreton Bay starting from $785,000. A presentation deck in front of fund managers pitches GemLife as the owner of 32 communities, making it Australia’s fourth-largest land lease community operator. The modelling shows it is nudging 10,000 sites, putting it Stockland’s Halcyon brand, Ingenia Communities and Sun Communities joint venture, and US player Hometown’s local business.
Land lease operators make money from home sales as well as ongoing rental for the underlying land, and GemLife has forecast $313.7 million revenue, $123.3 million pro forma EBITDA, and $104.2 million pro forma underlying net profits for the 2026 financial year. The topline will have grown at a compounded annual growth rate of 27% since the 2022 financial year, while underlying profits are expected to have risen 42% on the same metrics.
The sales pitch has highlighted its impressive margins, that sit at 50% for an average home build and about 65% for community operating margins. The EBITDA margin is projected to go from 28.5% to 39.3% between the 2022 and 2026 financial years.
The IPO’s proceeds would pay down debt and buy Adrian's Aliria business launched in October last year, to add 12 projects and about 3325 sites to the listed entity.
On Friday afternoon, GemLife's bankers closed the cornerstone bookbuild after it had secured firm bids for its $750 million IPO target. GemLife has successfully offered shares at 15-times profit, a discount to the 17-times ASX-listed Ingenia Communities' trades at currently. The business would list with a $1.56 billion market capitalisation, with at least 50% free float.
GemLife will list on 4 July, according to its preliminary timetable.
Adrian told The Weekly SOURCE that he is the majority shareholder. His father is a shareholder while Thakral's stake is 31.7%. The founders are not selling their stakes.
The Puljich family through Living Gems has already secured $284.5 million from property developer Avid for eight fully-leased communities, plus $210 million from Stockland for five more.
Living Gems is back with new communities in the pipeline – while Adrian has launched pocket park land lease operator Aliria, backed by a $500 million pipeline.
GemLife's bankers, JPMorgan, Morgan Stanley and Highbury Partnership, will open the bookbuild more widely this week. Thakral told the Singapore Stock Exchange on Friday that GemLife is in advanced discussions with potential underwriters for the proposed IPO.
Gateway Lifestyle (bought by Hometown America in October 2018) was the last retirement living operator to list on the ASX on 1 July 2015, joining Ingenia Communities and Lifestyle Communities.
