ACCC deadline for submission on Stockland takeover of Lendlease estates in Ipswich, Moreton

Developers and home buyers in Ipswich and Moreton Bay have until Thursday to lodge concerns about a takeover of Lendlease estates which the ACCC fears could jack up prices.

ACCC chair Gina Cass-Gottlieb said there were concerns with the proposed acquisition in four main regions including the two in Queensland and two in NSW.

Developers, homebuyers and local authorities in Ipswich and Moreton Bay have until tomorrow, July 18, to lodge concerns about a statement of issues by the country’s consumer watchdog over a proposed takeover of developer Lendlease’s communities.

The Australian Competition and Consumer Commission listed concerns about development giant Stockland-Supalai’s takeover of 12 masterplanned communities, including at Ipswich and at Moreton Bay on July 4.

ACCC chair Gina Cass-Gottlieb said there were concerns with the proposed acquisition in four main regions including the two in Queensland and two in NSW, with fears the takeover would lead to hikes in house prices.

She said if the proposed Lendlease takeover proceeded there “may be” a lessening of competition in the projects at Ipswich and Moreton Bay.

Other ACCC fears listed in its statement included a possible reduction in the quality and amenity of additional services and the speed at which new houses and developable lots become available.

The site of Kinma Valley in Moreton. Picture: Lendlease.

Lendlease communities at Yarrabilba in Logan and Shoreline at Redland Bay were not mentioned in the ACCC statement, released this month, as being of concern.

Stockland said the transaction was a “step change” in the reshaping of its portfolio and an acceleration of its strategy with all projects only proceeding after regulatory approvals and relevant landowner consent.

A spokesperson said the ACCC issues reflected preliminary views on potential issues.

“We consider that there are compelling arguments why the proposed acquisition will not lessen competition,” the spokesman said.

“We will continue to engage with the ACCC to address any concerns.”

Projects in Queensland that Ms Cass-Gottlieb said had come under ACCC scrutiny in Ipswich were Kalina, Springfield Drive, Edens Crossing, Providence and Botanica.

In Moreton Bay, Ms Cass-Gottlieb said the ACCC statement of issues had focused on projects at Caboolture West, Kinma Valley and Ridgeview.

“Our fear is that after removing the closest competitor that there is a prospect that there would be rises in (house) prices and that, of course, is or real concern to us,” Ms Cass-Gottlieb told media on Wednesday.

“They (Lendlease and Stockland-Supalai) are the two largest (developers) of those competing in those areas.

“In Ipswich and Moreton Bay there are some others (developers) but these two are the largest and closest competitors, we think.

“These are preliminary concerns and there is a process that we go through and we need to review additional submissions we’ve received before we form a final view.”

Five masterplanned communities along the Ipswich southeastern growth region will be affected by the proposed takeover, including Peet Limited/Supalai’s Eden’s Crossing.

Lendlease’s Springfield Rise project is the largest masterplanned community within the Ipswich City Council area, and will be home to more than 12,000 residents once completed.

The ACCC said Stockland was the largest developer in Ipswich in terms of remaining supply of housing lots across its Kalina and Providence masterplanned communities, and the future Botanica development.

The ACCC also listed concerns that alternative developers in Ipswich would not able to compete.

Alternative projects in Ipswich are in the Ripley Valley and at White Rock.

“The ACCC is concerned that alternative masterplanned communities projects may not effectively constrain Stockland and SSRCP post-acquisition due to potential differences in the masterplanned communities offerings,” they said.

“The ACCC is continuing to consider the extent to which masterplanned community developments outside of Springfield are substitutes for consumers – distance from Springfield Rise in which consumers are likely to consider alternative MPC projects.”

Ms Cass-Gottlieb said the ACCC was still keen to hear people’s views on the takeover and urged submissions from competitors, participants who supply services and products and people hoping to buy into the communities.