Stockland shares rise after ACCC paves way for Lendlease project
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Stockland were up nearly 2% to $5.39 in early trading on the ASX after the competition regulator cleared its $1.3 billion acquisition of 12 residential communities projects from Lendlease.
Lendlease shares were up 0.2% at $7.07 each.
The deal is subject to a court-enforceable undertaking that requires Stockland to divest the Forest Reach master-planned community project in the Illawarra region of New South Wales.
ACCC gives nod to Lendlease projects sale to Stockland
The news: The competition regulator has cleared a proposed sale by Lendlease of 12 communities projects to Stockland and Supalai subject to a partial divestment by the latter.
The numbers: The $1.3 billion deal for the sale of 12 residential communities was first announced in December 2023, and the Australian Competition and Consumer Commission (ACCC) outlined its preliminary concerns with the transaction last month.
The regulator has now cleared the deal subject to a court-enforceable undertaking that requires Stockland to divest the Forest Reach master-planned community project in the Illawarra region of New South Wales.
The context: The ACCC said its investigation found there were few alternative masterplanned community projects to constrain Stockland in the Illawarra and that prospective entrants faced challenges, including delays in the availability of essential infrastructure such as sewer and water services.
To address the concerns, Stockland offered an undertaking to divest the Forest Reach project near Dapto. The transaction, which remains subject to approvals from landowners as well as the Foreign Investment Review Board, is expected to be completed in the second quarter of FY25.
The deal is part of Lendlease’s asset sales efforts aimed at simplifying its operations and boosting returns to shareholders.
The source: ASX announcement
