Business
Stockland : and M&G Real Estate form strategic land lease partnership in Australia
Stockland : and M&G Real Estate form strategic land lease partnership in
About this update from Stockland
Stockland (ASX: SGP) and M&G Real Estate announce the formation of the Stockland M&G Land Lease Partnership ("SMLLP"), a strategic capital partnership established to invest in and grow a portfolio of land lease communities across Australia's expanding senior living sector. The partnership, with Stockland, as operator and developer, holding a 50.1% interest and M&G Real Estate holding a 49.9% interest, with investment made on behalf of its Asia Pacific Living Strategy, will be seeded with two Victorian land lease communities - Halcyon Jardin (Clyde North) and Halcyon Evergreen (Clyde), comprising a combined 573 homes to be delivered in stages through 2029. Both communities are currently under development with planning approvals secured and home sales underway. The transaction further strengthens the relationship between Stockland and M&G Real Estate, building on the formation of their logistics partnership in 2024. It reflects the growing institutional interest in Australia's land lease sector, supported by structural tailwinds including demographic ageing, housing supply constraints and the growing demand for community-oriented living options. Stockland Chief Investment Officer, Justin Louis, said Stockland is pleased to expand its existing relationship with M&G Real Estate through the establishment of SMLLP. "This partnership builds upon Stockland's strong relationship with M&G Real Estate and aligns with our strategy to partner with long-term institutional capital in the living sector." "Demand for modern, amenity-rich land lease communities continues to grow, and partnerships such as this support Stockland's ability to serve that demand while delivering sustainable, long-term value,"he said. Jing Dong (JD) Lai, Chief Executive Officer and Chief Investment Officer of M&G Real Estate Asia, said: "We have long held strong conviction in the Asia Pacific living sector, which continues to demonstrate resilient demand supported by demographic shifts and housing undersupply. Our entry into Australia's land lease community sector reflects our confidence in the long-term fundamentals of senior living and the role institutional capital can play in delivering high-quality housing for an ageing population. "Partnering with Stockland enables us to combine global capital with experienced local development and operational capability, creating a platform positioned to deliver both development-led returns and long-term income for our investors." Australia's land lease sector is supported by favourable long-term structural drivers, including demographic ageing, high levels of home ownership and increasing demand for affordable downsizing options in growth corridors. According to the Australian Bureau of Statistics' 2023 population projections, the number of Australians aged 65 and over is expected to increase by around 40% over the next two decades, creating sustained demand for senior living solutions 1 . The sector has experienced steady growth in recent years, with increasing institutional participation as the sector continues to mature and attract long-term capital. The land lease model combines development returns from home sales with recurring site rental income, creating a residential investment model that blends growth and stabilised cash flow over the life of the asset. About Stockland We are a leading creator and curator of connected communities with people at the heart of the places we create. For more than 70 years, we have built a proud legacy, helping more Australians achieve the dream of home ownership, and enabling the future of work and retail. Today, we continue to build on our history as one of Australia's largest diversified property groups to elevate the social value of our places, and create a tangible sense of human connection, belonging and community for our customers. We own, fund, develop and manage one of Australia's largest portfolios of residential and land lease communities, retail town centres, and workplace and logistics assets. Our approach is distinctive, bringing a unique combination of development expertise, scale, deep customer insight, and diverse talent - with care in everything we do. We are committed to contributing to the economic prosperity of Australia and the wellbeing of our communities and our planet. About M&G Investments and M&G Real Estate M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc's UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £375.9 billion of assets under management (as at 31 December 2025). M&G plc has around 4.2 million retail clients and more than 1,000 institutional clients in 38 offices worldwide. For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate. M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI). M&G plc has committed to achieve net zero emissions by 2050 at the latest, across our investment portfolios and operations. M&G Real Estate is a leading financial solutions provider for global real estate investors. As part of M&G Investments' private markets business, M&G Real Estate has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds. Globally M&G Real Estate manages approximately £34billion (as at 31 December 2025) of assets on behalf of clients, providing a range of strategies and solutions. For more information, please visit: www.mandg.com 1. Australian Bureau of Statistics, Population Projections, Australia, 2023 (Series B)