It was bound to happen and was only a matter of time, Stockland which has kept its feet planted solidly in Australia has decided to pack it bags and track across the property markets in United Kingdom and Europe.
At yesterday’s annual general meeting, Stockland’s managing director Matthew Quinn said the group’s management team has been working very closely with the board to determine whether it makes sense for the group to move into new overseas markets in order to maximise long term value for our security holders.
Quinn said the group is confident that Stockland has the capability and competitive advantage as a truly diversified and integrated property group to successfully take the business into certain key overseas markets.
“After significant research and evaluation of global property markets and dynamics we have decided to pursue a focused market entry strategy, backed up with people on the ground, in our favoured market in the United Kingdom, which over time we would potentially use as a base for potential growth into European markets,” he added.
The entry into the UK will give Stockland an early heads up. In January 2007, the UK will begin to see REITs trade on the London Stock Exchange.
Quinn said a key part of the offshore strategy will be the creation of partnerships and alliances with local groups.
He added that the group already has developed a strong rapport with several such groups and with key advisory partners in the UK.
“We also see our Unlisted Property Funds capability as a key platform for success, as we would expect a significant portion of our offshore assets to be off balance sheet.
“We have a strong commitment to having the appropriate human resources on the ground and to ensuring our culture is exported into new markets,” he added.
Meanwhile, Stockland has announced that the head of strategy and corporate development, Lisa Scenna will shortly relocate to England to head up a small team of key executives to pursue the group’s offshore expansion strategy.
“We are excited about this initiative and we see the potential for Stockland to develop a significant and successful international business in the long term. We will provide you with updates of our progress in the coming months,” Quinn said.
There had been earlier market speculation that Stockland was looking at offshore markets, when the group appointed John Schroder to the role of chief executive of Stockland’s shopping centre division.
Schroder was formerly the chief operating officer at Westfield in the United States.
By Nelson Yap
