Stockland looks to offload $635 million Melbourne master planned community as residential sales slip

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The Fin Review is reporting the developer is expecting to sell The Grove Estate at Tarneit, 31km west of the Melbourne CBD, for between $150 to $170 million.

The Estate is one of Stockland’s best-selling communities, with 28% of the 2,495 lots sold priced from $218,000 to $339,500.

But Stockland’s residential sales have slowed as the downturn in the housing market continues across all the capitals, particularly Sydney and Melbourne.

According to the paper, analysts say Stockland needs to sell assets to reduce its gearing and fund a $350 million buyback of its shares. These are currently trading at $3.675, about 13% below their net Tangible Asset Value of $4.18.

The group also recently merged its Retirement Living business into its Residential division after its retirement profits fell 16.7% on the back of last year’s Fairfax/Four Corners investigation into retirement villages.