Stockland advised the Australian Stock Exchange that “it is currently in exclusive negotiations” to buy Queensland-based Halcyon Group’s land lease communities business.
However, it added that there was no certainty that a purchase can be agreed upon. The Australian Financial Review reported that Stockland values Halcyon at about $625 million.
Halcyon has been seeking a capital partner to take a majority stake in the business to fund its expansion interstate. The negotiations have seen those interested parties – other frontrunners have been Ingenia Communities and Serenitas – convince Halcyon to sell.
Fresh impetus for the takeover appears to have come from Stockland’s new CEO Tarun Gupta after it was reported Stockland had “cooled” its interest.
Created by Joint Managing Directors Dr Bevan Geissman and Paul Melville (pictured) in 2004, Halcyon has created nine land lease communities for over 50-year-olds across South East Queensland. More than 2,500 people live in their land lease communities.
Dr Geissman was a General Practitioner and Mr Melville, a lawyer, met at a barbecue.
“We agreed it was time that someone created a new and innovative housing and lifestyle model for Australian seniors. We wanted to change the face of retirement living,” Mr Melville said in November 2019.
“I was living with my grandmother when I was in university and I noticed she had become a prisoner in her own home. She was fearful of being robbed and worried about her safety, and ultimately was getting a bit lonely. At Halcyon, we work to create and maintain an entire community – it’s not just housing, it’s about how you make people feel.”
Halcyon Parks in Caloundra on Queensland’s Sunshine Coast was its first land lease community in 2004. It expanded to Halcyon Lakeside, Halcyon Landing and B by Halcyon also on the Sunshine Coast, Halcyon Greens, Halcyon Waters and Vision by Halcyon on the Gold Coast, Halcyon Glades on Moreton Bay and Halcyon Rose in Logan Region.
Dr Geissman said in November 2018 that the business was “getting to a stage where we can start to explore other opportunities outside of Queensland”.