Veteran residential developer, AVID Property Group (AVID), has launched a new business to expand into Australia’s fast-growing land lease communities (LLC) sector, cementing the company’s status as one of the country’s leading residential
developers and operators.
AVID, a residential property developer and operator controlled by real estate private equity firm Proprium Capital Partners, has announced the launch of Vantage, a new company that will bring 3,800 land lease sites to 14 land lease communities.
The $1.1 billion portfolio will span across regional areas in Queensland, Victoria and New South Wales.
Vantage is being seeded with 14 high-quality LLC assets, including six greenfield sites plus eight fully operational and occupied LLC's to be acquired from the Puljich family’s Living Gems business for $284.5 million. The acquisition, combined with the existing portfolio, will make Vantage one of the leading developers and operators of LLC's in Australia.
With a gross revenue pipeline of $5 billion and more than 75,000 residents living within AVID communities, the launch of Vantage brings 1800 established home sites and a further 2,000 sites in its LLC development pipeline. AVID will commit more than $800 million to the six greenfield communities currently under development over the next six years. The Vantage business will have an expected net realisable value of over AUD$1.4 billion, with most communities located in South-East Queensland, a strong and fast-growing market for LLC developments.
Building on a portfolio of 45 projects in near-city and sought-after regional locations in Queensland, Victoria and New South Wales, AVID’s strategic expansion into the fast-growing LLC sector follows its 2019 take-private of the listed developer-builder Villa World Limited.
With a highly experienced team and 17-year track record of successfully developing quality, award winning developments spanning broadacre land projects, master planned-communities, completed house and land packages and apartments, the strategic expansion addresses a clear opportunity for AVID in the market, focusing on the fastest growing demographic in Australia, the over 50 market.
AVID’s extensive portfolio, including Harmony on Queensland’s Sunshine Coast, which was voted as Australia’s best master-planned community in 2023 by the Urban Development Institute of Australia, includes residential housing developments targeted at the under 50 demographic, with less than 10 per cent of buyers over the age of 55.
Anthony Kingsley, partner at Proprium Capital Partners, which has USD$4 billion of assets under management and existing residential living strategies in Europe and Asia, said: “AVID’s entry into the LLC sector complements its established business of successfully and responsibly developing and operating high-quality award-winning residential homes and communities, creating one of Australia’s leading LLC operators and developers.
"With the launch of Vantage, we are proud that our investment into the AUD$1.2 billion LLC will help address structural issues within Australia’s housing market, which remains under pressure from the strains of high and increasing demand and limited supply.”
Cameron Holt, CEO of AVID, said: “AVID has sought to expand into a new market segment which will add further depth to its product offering and provide a fully integrated residential development and operational business. Strong recurring earnings from the new Vantage business and brand are targeted to underpin value in the AVID business and provide an opportunity to expand our intense focus on customer experience and create more great places for Australians to live and thrive.”
“Vantage by AVID is our unique approach to land lease community living. With the addition of LLC to our portfolio, there is now an AVID housing offer suitable for a broad range of customers – no matter their stage of life, from first home buyer to empty nester. By making the move to LLC, the growing baby boomer generation of Australians can unlock new housing stock, freeing up their large family homes for the next generation of families.”
Manuel Lang, General Manager of AVID’s Land Lease Communities business, said: “We are excited to launch the Vantage business, having diligently crafted our approach and product to ensure we meet the requirements of this discerning market. We warmly welcome the nearly 3,000 homeowners in the established communities and look forward to bringing them into AVID’s passionate customer-led approach.
AVID’s values align perfectly to this sector and being authentic is critical. We are passionate about the LLC sector and take our responsibilities as an operator of communities seriously to allow our homeowners to bring more to life.”
Construction has already commenced at three Vantage locations and will welcome the first customers when the distinctive sales and information centre doors open in mid-June 2024. AVID Property Group will formally take control of the Living Gems communities early in the 2025 financial year. The transaction is subject to FIRB approval.
Publisher Website: https://avid.com.au/