This article is from the Australian Property Journal archive
AVID Property Group is expanding into Australia’s growing land lease communities (LLC) sector with the launch of a new $1.1 billion business, Vantage.
The residential property developer and operator, controlled by real estate private equity firm Proprium Capital Partners, has launched the LLC business, as AVID expands its strategy beyond the development of master-planned communities.
“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,” said Anthony Kingsley, partner at Proprium Capital Partners.
“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.”
Vantage is being seeded with 14 high-quality LLC assets, including six greenfield sites and eight fully operational and occupied LLCs set to be purchased from Living Gems for $284.5 million.
The acquisition, combined with the existing portfolio, is set to establish Vantage as one of the leading developers and operators of LLCs in the country.
AVID boasts gross revenue pipeline of AUD$5 billion and more than 75,000 residents living in AVID communities.
The launch brings 3,800 land lease sites across 14 LLCs, consisting of 1800 established home sites and a further 2,000 sites into the development pipeline.
“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,” said Cameron Holt at AVID.
“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.”
AVID will also commit more than $800 million into the six greenfield communities currently under development over the coming six years.
With Vantage business to boast an expected net realisable value of over $1.4 billion.
The majority of its communities are located in South East Queensland, with a portfolio of 45 projects across QLD, Victoria and NSW.
“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,” said Manuel Land, general manager of AVID’s Land Lease Communities business.
“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.”
AVID Property Group will take control of the Living Gems communities early in the 2025 financial year.
