Private developer Capital Property Group has snapped up a 50 per cent interest in Stockland’s largest masterplanned community, a 20,000 lot estate located on the Sunshine Coast.
Stockland says the major project has an end value of $5 billion, with the deal struck with billionaire Terry Snow's CPG.
Stockland chief executive Mark Steinert said the move was in line with its strategy to bring capital partners to invest with Stockland in delivering large scale projects.
“This is a long term investment given the life of the project,” Steinert said.
The Sunshine Coast estate, comprising 20,000 lots, is forecast to become home to 50,000 people over the next 20-to-30 years.
“Aura is one of the largest masterplanned communities in Australia… [CPG] will invest alongside us to continue the creation of an outstanding new city on the Sunshine Coast, combining affordable homes, retail town centres and business parks,” Steinert said.
Terry Snow's Capital Property Group developed and owns the Canberra Airport. It also has a mixed-use project, Constitution Place, under way in Canberra’s CBD.
Snow joined the billionaire club in 2017, largely thanks to his smart investments, chiefly the Canberra airport, which he purchased in 1998 with a 99-year lease from the Federal government for $65 million.
And with the Sunshine Coast’s international airport development under way, Snow describes the Sunshine coast region as “an exciting growth area” in Australia.
“It will drive growth in the many industries that are expanding on the coast,” he said.
“When you couple that with the climate and the scale of Stockland’s vision, this is a long-term project that we are very excited to support.”
Stockland will continue to manage the development and delivery of the Aura estate, including the delivery of infrastructure to be rolled out under existing agreements with local and state government.
Steinert said partnerships like this would strengthen its balance sheet, and free up capital to invest in other counter-cyclical deals.
“Including our workplace and logistics development pipeline and additional residential community acquisitions,” he said.
While profit related to this transaction will be recognised in financial year 2020, the ASX-listed company is scheduled to release its full year results in August.