The Australian Competition and Consumer Commission (ACCC) has published a Statement of Issues outlining preliminary competition concerns regarding Stockland and Supalai’s proposed acquisition of 12 Lendlease residential masterplanned community projects through a joint venture.
Lendlease, Stockland, and Supalai are developers of masterplanned community projects, and the acquisition involves Lendlease selling 12 out of its 16 projects in NSW, Queensland, Victoria, and Western Australia.
“We are concerned that the proposed acquisition would remove one of Stockland’s closest and largest competitors in the supply of residential masterplanned community housing lots in four regions - the Illawarra, North West Perth, Ipswich, and Moreton Bay,” ACCC Commissioner Liza Carver (pictured above) said.
ACCC’s preliminary concerns suggest that the acquisition may increase Stockland’s incentive to raise prices, delay supply, or reduce the quality of housing lots in the affected regions, potentially harming prospective homeowners.
Market feedback indicated that Stockland and Lendlease are close competitors with strong reputations and the capability to invest in high-quality amenities, including education, parks, and town centres.
“We are concerned that other developers of masterplanned community projects may not be able to compete sufficiently with Stockland after the acquisition in some regions,” Carver said.
“These preliminary concerns are strongest in the Illawarra region of New South Wales where the proposed acquisition would bring together the two largest masterplanned community projects in an already highly concentrated market,” Carver added.
ACCC, which recently expressed strong support for the government’s initiative to enhance Australia’s merger laws, is also evaluating whether the acquisition might increase the risk of anti-competitive coordination among developers regarding the pricing, supply, and quality of masterplanned community projects.
The ACCC invites submissions in response to the Statement of Issues by July 18.
For more information and to view the Statement of Issues, visit the ACCC’s public register: Stockland Supalai Residential Communities Partnership Pty Ltd - Lendlease Group.
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