Stockland cools on contest for lifestyle communities provider Halcyon

halcyon Greens in southeast Queensland is Australia’s biggest lifestyle community designed exclusively for over 50s.

Interest from Stockland in lifestyle communities provider Halcyon is believed to be cooling, leaving at least one other party to battle it out in the final stages of the contest to buy the $650m-odd business.

The Queensland-based lifestyle community operator that offers manufactured housing for its residents has hired Rothschild for a sale and is in the final stages of the competition.

Stockland, advised by Moelis, made it through to the final round, along with Ingenia, advised by Jarden, although some believe that Brookfield and Macquarie Infrastructure and Real Assets may also be in the final mix.

However, sources say Stockland, which is the country’s largest residential property developer, may have its pens down for now.

The understanding is that the country’s largest residential developer was off the pace in the first round of the contest in terms of price.

One market expert said a challenge for major groups like Stockland or Mirvac Group bidding for such a portfolio is that the $600m-plus price tag places a large valuation on the company’s intellectual property, and both groups do not need the IP because they can develop it themselves.

Stockland’s share price is soaring amid a residential property boom, with its market value at $11.2bn.

Final bids for the business are due about June 25.