Stockland has sold a 50 per cent interest in its Aura residential development in Queensland to rich lister Terry Snow.
The diversified property group says Mr Snow’s Capital Property Group, which also owns Canberra Airport, has agreed to pay a 30 per cent premium to the project’s book value.
Stockland would not disclose the book value of the Sunshine Coast project, which comprises 20,000 lots and is Australia’s largest masterplanned community in single ownership, but its most recent portfolio update estimated an end-market value of $5 billion.
“The Sunshine Coast is one of the most exciting growth areas of Australia and the development of the new international airport will drive growth in the many industries that are expanding on the coast,” Mr Snow, who is CPG executive chairman, said on Thursday.
“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’s half-year portfolio update released in December said Aura will include a shopping centre, schools, a university, retirement and aged care facilities, parks and sport centres, all surrounded by more than 700 hectares of conservation areas and open space.
It was eight per cent settled at December 31.
“We have a clear strategy to bring capital partners in to invest alongside us to deliver large scale projects,” Stockland managing director and chief executive Mark Steinert said.
“Partnerships like this help strengthen our balance sheet and enable us to invest in other growth opportunities across our diversified portfolio, including our workplace and logistics development pipeline and additional residential community acquisitions.”
Stockland is scheduled to release its full-year results for the 12 months to June 30 on August 21.
It will book the profit from the Aura transaction in its accounting for the 2020 financial year, which started on Monday.