Stockland says its wider development skills – particularly in the fast-growing land lease sector targeting downsizing baby boomers – will allow it to make more profit than Lendlease could from the 12 master-planned communities it sold to Stockland in a $1.3 billion deal.

Stockland, which will pay $1.063 billion for the existing communities and up to $239 million more for additional parcels of land, could do more with the communities, said chief executive Tarun Gupta – who in a previous role as Lendlease’s Australia head of property oversaw 10 of the estates.