Future of land lease operator Lincoln Place in play
The business was established in 2018, with Cerberus owning the majority of the land-holdings vehicle and the founders retaining a minority stake. In the operating company that sells the homes, the structure is reversed, with Cerberus in the minority.
The future ownership of fast-growing land lease operator Lincoln Place is in the spotlight, with its major backer reportedly testing appetite for a change of hands.
American investment firm Cerberus Capital Management – which has funded the rapid expansion of the business founded by Ben Hindmarsh and Nicholas Collishaw – is understood to be exploring options for its stake.
The Australian reported last Thursday that the owners, alongside adviser Goldman Sachs, had unsuccessfully approached major listed groups including Mirvac, Stockland, Ingenia and GemLife about a potential $1 billion sale.
Talk of a near-term float appears premature. Lincoln Place, which had racked up $44 million in development acquisitions in nine months to October, remains tightly held.
The business was established in 2018, with Cerberus owning the majority of the land-holdings vehicle and the founders retaining a minority stake. In the operating company that sells the homes, the structure is reversed, with Cerberus in the minority.
The most likely outcome now is a secondary transaction, with Cerberus seeking to sell down its position at a profit.
Superannuation funds and sovereign wealth funds are seen as potential buyers to recapitalise Lincoln Place and become part-owners in place of the US investor.
