Stockland sells Melbourne residential stake to Thailand‘s Supalai

The country’s largest listed residential developer Stockland has sold a stake in a Melbourne housing estate.

Stockland chief executive Andrew Whitson.

Listed property major Stockland has locked in a fresh capital partnership to back the development of a major residential land estate in Melbourne’s north.

The move by the country’s largest listed residential developer came despite the city’s lockdown rules putting a lid on sales from land estates as the city battles a rise in coronavirus cases.

The company, which has been taking on more backers in its housing unit, has sold a half-interest in the Katalia estate in Donnybrook Road to Thailand’s SET-listed Supalai for $52.5m.

Stockland picked up the 89ha site in late 2019 for $105m, with much of the price deferred, and will settle on part of it this financial year. Building is due to commence in coming months.

Stockland will manage the development and delivery of the estate, including the infrastructure, and will receive an ongoing management fee from Supalai.  Supalai is a leading residential and commercial developer listed on the Bangkok Stock Exchange with a market capitalisation of about $2bn.

The company was set up in 1989, with its first investment in Australia in 2014, and it has residential developments and apartments across Thailand.

Stockland chief executive, communities, Andrew Whitson said the partnership with Supalai was “in line with our strategy to grow our capital base with quality capital partners”.

“Partnerships like this enhance our project returns and balance sheet capacity to invest in other growth opportunities across our diversified portfolio, including our workplace and logistics development pipeline, and further restocking our residential pipeline,” he said.