Mitsubishi Estate Asia (MEA) has put its half-interest in an Australian land lease communities partnership it owns with Stockland up for sale.
IPE Real Assets understands that a 100% interest in the Stockland Residential Rental Partnership (SRRP) portfolio would have an indicative value of around A$450m (€266m).
The portfolio includes six operational land lease communities comprising 2,025 homes with resort-quality facilities in prime lifestyle locations across South-East Queensland and Melbourne.
MEA has appointed CBRE’s Stuart McCann and Paul Ryan to oversee the sale of its 49.9% stake.
Australian residential developer Stockland will continue to own its 50.1% interest in SRRP.
Established in February 2022, SRRP was created to develop and manage a long-term portfolio of land lease communities, leveraging Stockland’s landbank. Under the terms of the joint venture, Stockland retains responsibility for the day-to-day management of the operational assets and oversees all new development activity on behalf of the partnership.
MEA said the divestment is in line with its global capital recycling strategy. The Japanese group said the sale will play a key role in supporting the expansion of its long-term investment platform across the Australian market.
Yosuke Matsunaga, Mitsubishi Estate Asia’s head of Australia, said: “The Stockland Residential Rental Partnership and land lease communities asset class has performed exceptionally well, and we are grateful to Stockland for their strong partnership throughout the development period.
“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, CBRE’s managing director and head of capital advisors, Pacific and Southeast Asia, said the divestment was attracting strong local and offshore investor demand due to the opportunity to partner with Stockland and tap into Australia’s land lease sector.
“Australia’s $12bn-plus land lease sector is attracting major institutional and private equity capital, driven by strong demand for affordable, age-qualified housing.
“The Mitsubishi Estate Asia divestment 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.”
Ryan said: “An aging population with an extended lifespan and growing retirement wealth is driving demand and supporting the premium end of the land lease market.
“The Stockland Residential Rental Partnership portfolio is supported by this lifestyle-focused demographic and the growing demand for community lifestyle benefits, amenity and convenience.”
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