Lifestyle Communities Ltd (ASX: LIC) provides resort style housing for individuals in their fifties and further up. The company's aim and mission has always been to enable the elderly people to enjoy affordable luxurious living in a secure setting, which will ultimately provide them with the much-needed peace of mind. The company has so far aided more than 3100 homeowners across the region of Victoria to begin a new life phase through the company's product.
The company has via a recent ASX release stated that it has executed a contract to purchase a site located in Plumpton, Victoria. The construction is expected to commence soon i.e., after the Q3 2019.
The site is slated to comprise approximately 260 homes, and hence would be the latest addition to the Company’s community. Lifestyle Plumpton will include a range of luxurious facilities namely clubhouse, bowling green, cinema and indoor pool.
Lifestyle Communities Managing Director, James Kelly said that the management is glad to announce the acquisition of the company’s second site in Melbourne's rapidly expanding north-west growth corridor. The development of a Lifestyle Community in this strategic location will target the growing baby-boomer catchment within the established suburbs of Caroline Springs, Taylors Hill and Sydenham.
As a result of the Plumpton acquisition, combined with the expansion of our Wollert North project announced recently at the Company's Annual General Meeting, Lifestyle Communities' portfolio will increase to 3,365 homes, which includes sites in planning, development or under management.
The Plumpton site also meets the required investment criteria, as it has:
· The catchment area which has a median house price of approximately $630,000;
· There are 192,000 people in the primary catchment; and
· There are approximately 48,360 people within the primary catchment, which are aged over 50 years.
This project is expected to be delivering the stated settlements in the financial year 2021.
The firm has via its operational update provided its sales and settlements information. It said that the company has achieved 85 sales and 118 settlements, as at the October end. Moreover, the company has acquired an additional land which is adjacent to the Lifestyle Wollert north. This has increased the community size to 243 homes, which is subject to the planning. The company’s Mount Duneed site is under construction while the Kaduna park and the lifestyle Wollert north are in the planning and the design phases. Overall, the group’s aim to acquire 1-2 sites per year seems to be on track with respect to growth strategy and building of communities can help drive long-term income prospects.
Meanwhile, there has been a decline in share price of the company by about 12.95 percent in the last six months, as on December 18, 2018. The shares were trading at a price of $5.05, with a market capitalization of about $ 527 million as on December 19, 2018, 1:40 PM AEST.