While there was no indication as to whether Stockland was negotiating for a stake or a full takeover of Halcyon there has been previous speculation that the talks put a valuation on Halcyon of about $600 million.
Stockland confirmed today that it was “currently in exclusive negotiations in relation to Halcyon Group’s land lease communities business’’.
“While discussions are continuing at this stage no complete binding agreement has been reached,’’ Stockland said in a statement to the ASX.
“There is no certainty that any agreement will be reached at any future time.
“Stockland confirms that the potential transaction is in line with its stated strategy to grow its land lease communities business which has an approximate 3000-lot pipeline.’’
The statement makes no indication of whether the negotiations are around buying a stake in Halcyon or a complete takeover but Halcyon is believed to want an investor to inject capital into the business.
Land lease refers to retirement communities where lots are generally more affordable and are leased rather than bought.
It’s a booming business in south east Queensland where Halcyon has a footprint over the Sunshine Coast, Gold Coast, Moreton and Logan regions.
Earlier this year Stockland chief executive Tarun Gupta said the land lease sector catered to the growing baby boomer market.
Stockland is also Australia’s third largest operator of retirement villages.Jump to next article