Property developer Stockland has bought a major stake in fellow developer Australand.
Stockland acquired a 19.9 per cent stake in Australand, or more than 115 million securities, at an average price of $3.78, for a total of about $435.3 million.
The purchase comes as Australand's former major securityholder, Singapore-based real estate CapitaLand, sells out of the Australian company.
Stockland and Australand own and develop housing estates, industrial properties and office and apartment blocks.
"Australand has a diverse and complementary portfolio of assets, including a quality industrial portfolio and medium-density residential projects that are well aligned with our strategy," Stockland chief executive Mark Steinert said.
"Over time, this holding will enable us to explore strategic opportunities with Australand."
CapitaLand has sold its remaining stake in Australand, which represented about 39.12 per cent of total securities on issue.
CapitaLand said the price of Australand's securities had been strong in recent months, which enabled CapitaLand to get a good return on the investment in Australand.
CapitaLand, which had held 59.1 per cent of Australand, sold a 20 per cent stake in November 2013.
Australand in February reported a 25 per cent slide in full year net profit to $135 million, following writedowns on several commercial, industrial and residential projects.
Im May 2013, property owner and manager GPT group dropped a $3 billion bid for Australand's commercial and industrial assets.
Securities in Australand gained nine cents to $3.98, while Stockland dropped 10 cents to $3.75.
