Lifestyle wars: Listed minnow sues Stockland over name grab

Lifestyle Communities has gone to court to protect its brand against what it alleges is unfair use by top developer Stockland.

A Lifestyle Communities Clubhouse

A legal stoush has broken out in the idyllic world of lifestyle living with listed specialist Lifestyle Communities launching legal action against the country’s largest residential developer, Stockland, for infringing on its trademark name.

The smaller company has alleged that Stockland has contravened consumer laws over its use of the trademarked brand “Lifestyle Communities” after the development giant moved into the sector at scale with the purchase of Queensland lifestyle villages group Halcyon for $620m in 2021.

While Lifestyle Communities has been a mainstay of the once niche area, a series of larger companies, including Stockland, have forged into the sector due to lucrative returns on offer in the relatively affordable segment of the housing market.

Lifestyle Communities has been one of the strongest performing property groups and put that partly down to trading under its own brand since setting up in 2003. It now has 30 estates either under management or being developed.

The area has become a serious business for Stockland as it delivered $58m of funds from operations last year and the company says it has positioned for further growth by launching up to 12 new estates this financial year.

But its smaller rivals said that the diversified property giant had engaged in misleading and deceptive conduct by using its longstanding brand in what it said was a direct attempt to draw upon the success of Lifestyle Communities’ unique name built up over 20 years.

Lifestyle Communities alleged Stockland has created confusion for consumers by extensively using the Lifestyle Communities brand in its marketing, on its website and in its search engine optimisation and marketing after buying the Halcyon operation.

Lifestyle Communities managing director James Kelly said the business was set up as a “business for purposes with a social and ethical mission” to provide affordable housing and sustainable returns.

“We’ve dedicated over two decades to building our unique brand, Lifestyle Communities and don’t understand why Stockland continues to use our brand in its marketing when there are any number of alternative options for them to use, including their own brand,” he said.

The legal action reflects a deeper antagonism after Lifestyle Communities claims to have helped Stockland get into the area.

“When Stockland initially entered the market, we extended a warm welcome by giving their team multiple tours of our communities and providing valuable advice and support,” Mr Kelly said. “We were excited by the prospect of operators like Stockland helping to grow the land lease sector while maintaining the highest levels of governance and care for customers.”

“All we have ever asked in return is for Stockland to not use our brand. Lifestyle Communities and Halcyon Communities have coexisted for almost 20 years prior to Stockland’s ownership and we have never had this issue with Halcyon before. It is perplexing to us why Stockland insist on utilising our brand,“ he said.

Lifestyle Communities has gone to Federal Court seeking orders that Stockland stop using the ‘Lifestyle Community/ies’ name or signs which are confusingly similar to its own and to prevent it from registering the name.

“We have received notice of a statement of claim. Given the matter is now before the court, we won’t be making any further comment,” a Stockland spokeswoman said.