Stockland Benchmarking Strategic Asset Management

HillPDA’s project brief from Stockland was to prepare a high level paper outlining industry benchmarks and pricing mechanisms for various types of projects including:

  • Residential land subdivisions;
  • Medium density apartments; and
  • Commercial/retail development.

The aim of the analysis was to benchmark Stockland’s hurdle rates and approach so as to assess its competitiveness in pricing.

HillPDA’s methodology was to review the various benchmarks and benchmark rates adopted for the various asset classes and asset/ product types.

Specifically HillPDA was asked to comment on how the industry measures the returns on housing components especially in relation to integrated housing i.e. do they expect no return on housing given their return may just be on the land development component?.

Finally the report was to comment on who have been the movers, both positive and negative, in the industry over the last five years i.e. what were the emerging trends both financially and what projects made them successful e.g. what was working and was not.