Mitsubishi Estate to Sell Off Aussie Land Lease Stake

Real estate investment giant Mitsubishi Estate has announced it will sell its 40.9 per cent stake in the Stockland Residential Rental Partnership.

The portfolio includes six new operational land lease communities comprising 2025 homes in South-East Queensland and Melbourne. 

Stockland would continue to own the controlling 50.1 per cent share in the Stockland Residential Rental Partnership. 

CBRE’s Stuart McCann and Paul Ryan have been appointed to oversee the divestment of the land lease communities interest. 

Mitsubishi Estate Asia head of Australia Yosuke Matsunaga said the divestment was consistent with the real estate investor’s global capital-recycling strategy, which enabled MEA to reinvest proceeds into other development projects. 

“The Stockland Residential Rental Partnership and land lease communities asset class has performed exceptionally well,” Matsunaga said. 

“As the portfolio is now largely stabilised, this divestment will allow us to recycle capital and pursue further high-quality investment opportunities in the Australian market.”

McCann said the portfolio stake was expected to attract domestic and offshore interest. 

“Australia’s $12-billion land lease sector is attracting major institutional and private equity capital, driven by strong demand for affordable, age-qualified housing,” McCann said. 

“[The portfolio] provides an opportunity to invest in one of the country’s highest-quality land lease portfolios, alongside an operator and developer with a strong brand, over 20 years of experience in the land lease sector and a track record of successful delivery.”