Lendlease's Masterplanned Communities Sale Raises Competition Concerns

By Stuart Condie

SYDNEY--Stockland and Supalai Australia Holdings' proposed acquisition of 12 residential masterplanned communities from Lendlease for 1.3 billion Australian dollars (US$872 million) could raise prices for prospective homeowners, Australia's competition regulator said.

The Australian Competition and Consumer Commission on Thursday said that it had preliminary concerns over the proposed deal, which was announced in December 2023.

The proposal would remove one of Stockland's closest and largest competitors in four regions, ACCC Commissioner Liza Carver said.

"The proposed acquisition may increase Stockland's incentive to raise the price, delay the supply, or reduce the quality of housing lots in these regions, to the detriment of prospective homeowners," Carver said.

Stockland said that it and Supalai would engage with the ACCC to address its preliminary concerns ahead of an expected final decision on approval on Sept. 12. The transaction also needs approval from Australia's foreign-investment regulator.

Lendlease announced the divestment of the communities as part of its strategic pivot toward becoming a real-estate asset manager.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

07-03-24 2005ET