Lifestyle Communities will increase its site acquisitions from two to three a year. It has secured an extra $100 million from CBA, HSBC and NAB to boost its total debt facility to $375 million.
Co-Founder and CEO James Kelly is targeting Melbourne and Geelong growth corridors for site acquisitions and development on the back of 360 homes sales in FY21.
“We sit at two-plus [sites per year], maybe three,” said Mr Kelly.
“We’ll hit that tipping point where it’s a clear three, but we’re not quite there yet.”
Lifestyle Communities’ profit after tax was $91.1 million for the 2021 financial year, underpinned by a $76 million post-tax non-cash uplift in the value of the company’s property portfolio.
New home settlements for FY21 were 255 (FY20: 253) and resale settlements attracting a DMF were 105 (FY20: 80) increasing annuity income from site rentals and deferred management fees by 15% to $32.4 million (FY20: $28.1 million).
“To deliver new home settlements consistent with last year in this environment was a solid achievement,” said Mr Kelly.
He revealed that the start of the 2022 financial year had seen 250 new homes sold and awaiting settlement.
“With the current pipeline of projects, the business has the ability to deliver 1,100 to 1,300 new home settlements and 450 to 550 resale settlements over the next three years subject to the ongoing uncertainty and restrictions in relation to the COVID-19 pandemic on the Victorian property market.”