ASX-listed Stockland CEO Tarun Gupta has appointed an investment banker as Head of Retirement Living as the group looks to decrease its capital exposure to retirement living and retail, while doubling land lease settlement volumes by FY24.
The developer unveiled its strategy in a presentation posted on the ASX this week, saying it is looking to leverage its number one position in the masterplanned communities (MPC) sector to become a leader in land lease communities as well.
It plans to augment its current portfolio of 7,800 sites – especially following the Halcyon acquisition – with new additions from both its MPC pipeline and on-market purchases.
The company is aiming for around 300 settlements in FY22, and expects this to double over the next two years, with further growth to be driven by project launches in FY23-24; it sees high-quality recurring income in land lease, growing at 3.0-3.5% per annum.
Stockland plans to grow its Residential, Workplace and Logistics portfolio from 50% to more than 70% of net funds employed (NFE), while lowering Retail and Retirement Living to less than 30%. It is seeking divestments and capital partnerships to reduce its exposure in Retirement Living and Retail, so that the capital can be funnelled into higher-growth areas.
In line with the new strategy, former UBS banker Clem Salwin has been appointed to lead Stockland’s retirement living division.
Mr Salwin has over 25 years’ real estate experience across funds, investment, management, development, investment banking and corporate leadership including three years as CEO of the ASX-listed holiday park and land lease operator Aspen Group.
Stockland has been seeking capital partnerships for its retirement living business since 2014 – will Mr Salwin’s appointment prove to be the Midas touch?
