Stockland Corporation Limited

On 26 September 2024, the ACCC announced that it had accepted a court-enforceable undertaking given by Stockland Corporation Limited on behalf of itself and its subsidiaries (Stockland) pursuant to s87B of the Competition and Consumer Act 2010 (Cth) (the Undertaking) in connection with the proposed acquisition by Stockland Supalai Residential Communities Partnership Pty Ltd (SSRCP) of 12 of Lendlease Group’s 16 residential masterplanned communities (MPC) projects located across greenfield growth areas within Greater Sydney, South East Queensland, Greater Melbourne, and Greater Perth (the Proposed Acquisition).

The ACCC was concerned that, in the absence of the Undertaking, the Proposed Acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in the supply of residential MPC housing in the Illawarra region.

Under the Undertaking, Stockland must divest the property interests and all other assets associated with its Forest Reach MPC project (the Divestiture Business).

Objective of the Undertaking

The objective of the Undertaking is to address the ACCC’s competition concerns that would otherwise arise as a result of the Proposed Acquisition. The Undertaking aims to achieve this by placing obligations on Stockland:

• to ensure that the Divestiture Business is sold to an ACCC-approved purchaser that will result in the creation or strengthening of a viable, effective, stand-alone and independent competitor for the supply of residential MPC housing in the Illawarra region
• to ensure the purchaser of the Divestiture Business has all the necessary associated assets and rights to compete effectively with SSRCP in the supply of residential MPC housing in the Illawarra region
• to maintain the economic viability, marketability, competitiveness and goodwill of the Divestiture Business prior to divestiture
• to provide for the effective oversight of Stockland’s compliance with the Undertaking.