Stockland fills its coffers for change of tack
Under the deal Charter Hall's unlisted Core Plus Office Fund will buy the property, increasing its Sydney office market exposure from 19 per cent to 27 per cent.
Under previous management, Stockland has focused on a "three Rs" strategy of retail, residential and retirement assets.
As a result, the former chief executive Matthew Quinn embarked on a sale program of the group's commercial and industrial assets, worth a combined $1 billion.
The new CEO, Mark Steinert, will report the group's half-year result to December 31 on Wednesday and analysts are expecting more information on his review of the business.
This could mean the sale of the retirement assets either to a third party or via the creation of a separately listed property trust.
Amid expectations that Stockland could also make some writedowns in its residential business, in a similar move to Mirvac last week, the consensus half-year profit is estimated at $250 million.
That compares with a net profit of $350 million for the previous corresponding period, which was also hurt by slow settlements for house and land developments and a flat retail market.
Frequently Asked Questions about this Article…
Stockland sold its 9 Castlereagh Street skyscraper to Charter Hall and raised about $172.5 million. The article says Stockland plans to use the funds for redevelopments.
Charter Hall's unlisted Core Plus Office Fund is buying the property. According to the article, that purchase increases the fund's Sydney office market exposure from 19 per cent to 27 per cent.
Under previous management, Stockland focused on a 'three Rs' strategy: retail, residential and retirement assets. The article notes that former CEO Matthew Quinn pursued a sale program of commercial and industrial assets worth a combined $1 billion as part of that strategy.
The new CEO is Mark Steinert. He was scheduled to report the group's half-year result to December 31 on Wednesday, and analysts were expecting more information on his review of the business at that time.
Yes. The article says Stockland's review could lead to the sale of the retirement assets either to a third party or via the creation of a separately listed property trust.
The article reports expectations that Stockland could make some writedowns in its residential business, with that possibility compared to a similar move by Mirvac the previous week.
Consensus estimates put Stockland's half-year profit at about $250 million, versus a net profit of $350 million in the previous corresponding period. The prior period was also affected by slow settlements for house and land developments and a flat retail market, according to the article.
Investors should watch Stockland's half-year results and any announcements from CEO Mark Steinert about his business review. Key items to monitor, based on the article, include plans to redeploy the $172.5 million raised, potential sales or listing of retirement assets, and any residential writedowns that could affect reported profits.
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