Land lease operator Halcyon looking to raise capital to fund development outside of QLD: Fin Review

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A sign of the growing confidence in the land lease model?

The Fin Review’s Street Talk column is reporting that the Queensland-based operator has called in global advisory and management firm Rothschild to help it assess its capital options as it looks to grow its footprint in other States and Territories.

Founded in 2004 by Dr Bevan Geissmann and Paul Melville, Halcyon currently has nine communities across southeast Queensland – mostly on the Sunshine Coast and Gold Coast.

While land lease operators traditionally targeted ‘affordable housing’, and are now moving into the $600K bracket, Halcyon as long ago as 2015 was building and selling homes for $1 million at Hope Island.

The Fin says the operator is now in the early stages of working with Rothschild on how it could secure several hundred million dollars in capital.

According to its source, the most likely option would be to locate a new capital partner who would be willing to find the expansion in exchange for a stake in the business.

A partner would help Halcyon to target a wider proportion of the over-55’s market.

As we reported here in 2018, Halcyon was then targeting a 25% market share of the land lease market with almost $1 billion in developments in their pipeline.