33 minutes after announcing it was leaving retirement villages Stockland announced it was creating a new partnership with the huge Japanese real estate investment fund Mitsubishi Estate, to build a lot more land lease communities.
Together they intend to have $4 billion in development and sales over the next five years.
Stockland already had 10 land lease communities being built, plus last year they bought Halcyon’s land lease communities for $620 million.
Land lease communities are charging ahead. Home builder Mirvac also decided this month to move into the sector in a big way. See our story below.
Land lease homes sell to 55 to 70-year-old’s, while retirement village operators sell to 75+. They are a different market. LLCs also do not have any care in their offer – for now.
As long-time LLC operator Palm Lake Resort has had to do in its older locations, it has opened Aged Care homes next door.