Mitsubishi Estate Asia flags land lease in renewed Australia push
After investing more than $18 billion across Australian property, Mitsubishi Estate Asia is reassessing opportunities in the living sector.
The Weekly SOURCE reported just last month that Mitsubishi Estate Asia is selling its 49.9% interest in a $450 million land lease community partnership formed with Stockland four years ago.
Now the local arm of Tokyo-listed Mitsubishi Estate is looking to reinvest capital and focus on development opportunities – partnering with developers on early-stage projects that have yet to secure development approval or before construction – before selling down its interest.
Australia’s housing undersupply – estimated at between 200,000 and 1.9 million homes depending on definition – offers the greatest opportunity, said Yosuke Matsunaga, Mitsubishi Estate’s Australian head.
“Our main focus area is the living sector,” Matsunaga said. “It’s another Build to Rent development opportunity, or a land lease community is also one target. Also, build to sell or a master planned community or land subdivision.”
Japanese investment in Australian real estate last year totalled $2.4 billion, making the country the second-largest source of capital after South Korea, which invested $3.9 billion, MSCI figures show.
