Split looms for Stockland and Mitsubishi Estate Asia’s $450M land lease partnership
The Japanese real estate business is selling its 49.9% interest in the $450 million land lease community partnership established with Stockland four years ago.
The land lease community sector is now firmly embedded as an institutional asset class, with Stockland Halcyon’s portfolio continuing to expand. In May last year, the group launched its 27th over-50s resort.
Mitsubishi Estate Asia is exiting after backing Stockland in the development phase since the capital partnership was struck in February 2022.
“This partnership will enable us to improve our market position by creating opportunities to scale up our Land Lease Communities business with a high-quality capital partner via the delivery of the $4 billion secured development pipeline,” Stockland CEO and Managing Director Tarun Gupta said at the time of the capital partnership announcement.
“The establishment of the Stockland Residential Rental Partnership will generate new, high-quality recurring management and rental income and opportunities to deliver ongoing development margins from our substantial land bank, leveraging our demonstrated leadership in master planned communities.”
CBRE’s Stuart McCann and Paul Ryan are handling the sale of the MEA stake, while Stockland will retain its majority holding and operation of the portfolio.
The deal includes six new operational land lease communities comprising 2,025 homes with resort-style facilities across southeast Queensland and Melbourne, and forms part of Mitsubishi Estate Asia’s global capital recycling strategy.
Stockland is targeting FY26 settlements of 700-800 land lease homes, with development operating profit margin in the low 20% range, according to its 1Q26 Operational Update.
The group is due to release its 1H26 Results for the period ended 31 December 2025 to the Australian Securities Exchange (ASX) on Monday, 16 February 2026.
