GemLife settles on market value of close to $2bn for IPO: sources

GemLife chief executive Adrian Puljich. Picture: Supplied

Family-owned land lease community operator GemLife is understood to have settled on value for its listing of close to $2bn, say sources, with the deal anticipated to be proceeding following market support.

The understanding is the Puljich family owners will not sell their holding for an initial public offering, likely to be around $700m, but rather raise new funds to pay for growth and pay down debt.

Sources say the price equates to 15 times the company’s net profit.

Working on the deal are JPMorgan, Morgan Stanley, Highbury Partnership, Ord Minnett and Morgans.

The moves to price the deal follow site visits for investors and a non-deal roadshow which extended to Asia.

The business is owned by the Puljich family and sells manufactured homes to the 50-plus section of the market on Australia’s east coast.

It was previously on the market for $2bn.

In 2022, when GemLife was for sale, Aware Super and APG were among the groups taking a look at the asset.

It describes itself as one of the fastest growing over-50s lifestyle resort operators, with 12 communities across Queensland, northern New South Wales and Victoria.

The company is headed by director and chief executive Adrian Puljich.

The play is for investors keen to gain exposure to a growth stock, rather than one generating a high yield.

Opportunities to gain exposure to land lease are in demand from investors, as evidenced by listed rivals, Ingenia and Lifestyle Communities, which are both trading at over 17 times their net profit.

Investors are likely betting on stronger demand for property with falling interest rates and a housing shortage.