Aware Super is buying a 25% interest in Lendlease’s retirement living business.
The transaction value has not been disclosed, but sources told IPE Real Assets the investment cost to Aware Super was “around A$450m” (€290m).
Aware Super’s portfolio manager, Alek Mizev, told IPE Real Assets that the deal was transacted at book value.
Lendlease has sold down its 75% holding in Lendlease Retirement Living, but will continue to own a 50% interest. Dutch pension asset manager APG Asset Management, holds the remaining 25%, having bought the stake in 2017, reportedly for around A$470m.
Aware Super’s chief investment officer, Damian Graham, said: “This investment aligns with our overall property strategy, which has an increased focus on residential – including affordable housing, multi-family and retirement living – and the industrial sectors.”
In 2017, Aware Super, then known as First State Super, acquired a 70% stake in a Queensland regional retirement village business, known as the Oak Tree Group. This has 20 projects currently under way. The investment in Lendlease’s business gives the fund scale, with exposure to a diversified, well-established, well-run business with more than 7,000 apartments.
“This transaction builds on our wider strategic partnership with Aware Super while further strengthening our Australian Retirement Living Joint Venture between Lendlease, APG Asset Management and now Aware Super,” said Kylie Rampa, Lendlease property CEO.
Aware Super is currently a 50:50 partner in the US$2bn (€1.6bn) Lendlease Americas Residential Partnership. The super fund is also a co-investor with Lendlease in a number of assets in Australia.
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