Mitsubishi Estate Asia exits Australian land lease sector
- Investment: Mercer acquires Mitsubishi Estate Asia’s stake in Stockland Halcyon portfolio
- 2,025 homes: Deal covers six land lease communities worth about $500 million
- Stockland stays: ASX-listed developer retains majority ownership and management
- Capital recycling: Mitsubishi exits to pursue new Australian property investments
Five months after signalling its intention to leave Australia’s $12 billion land lease sector, Mitsubishi Estate Asia has completed the sale of its stake.
Mitsubishi Estate Asia had held a 49.9% stake in a $500 million portfolio of approximately 2,025 homes across five stabilised Stockland Halcyon communities – B by Halcyon, Halcyon Greens, Halcyon Nirimba and Halcyon Rise in southeast Queensland, and Halcyon Berwick in Melbourne.
The deal also included Halcyon Promenade in Burpengary East, Queensland, which is under development.
The portfolio has been sold to a pension fund managed by New York-based Mercer Investments, according to a waiver notice issued by Australia’s competition regulator on 23 June.
ASX-listed Stockland holds the remaining 50.1% interest and will continue to manage the portfolio.
Financial terms were not disclosed and Stockland has yet to announce a sale and purchase agreement for the deal.
Stockland and Mitsubishi Estate Asia had established their Stockland Residential Rental Partnership (SRRP) in February 2022 to develop and own a portfolio of land lease communities under Stockland’s Halcyon brand, with an initial six assets then under development valued at approximately $500 million.
“The Stockland Residential Rental Partnership and land lease communities asset class has performed exceptionally well, and we are grateful to Stockland for their strong partnership throughout the development period,” Mitsubishi Estate Asia’s head of Australia, Yosuke Matsunaga, said in February at the start of a marketing campaign for the assets.
“As the portfolio is now largely stabilised, this divestment will allow us to recycle capital and pursue further high-quality investment opportunities in the Australian market.”
Stockland partnerships
The Sydney-based diversified property developer and Mitsubishi Estate Asia also operate a separate Stockland Communities Partnership developing masterplanned residential projects, which is unaffected by the Halcyon transaction.
Three months ago, Britain’s M&G Real Estate acquired a 49.9% stake in a separate partnership with Stockland Halcyon, which is developing two land lease communities in southeast Melbourne and marks the UK firm’s first land lease investment in Asia Pacific.
In 2024, Stockland also teamed up with Invesco Real Estate to develop an initial portfolio of three land lease communities in Australia. Invesco Real Estate acquired retirement village operator RetireAustralia in August last year.
