This article is from the Australian Property Journal archive
AWARE Super has purchased another 24.9% interest in Lendlease Retirement Living Trust, now holding an almost 50% stake in one of the country’s largest owners, operators and developers of retirement villages.
The $490 million acquisition brings Aware Super’s interest in the trust up to 49.9%, after initially buying in to a 25% interest in March of last year.
“Today’s announcement that Aware Super will acquire an additional interest in the Lendlease Retirement Living Trust further cements the relationship between our two organisations,” said Tony Lombardo, global CEO of Lendlease.
After more than 30 years’ operating in the sector, Lendlease Retirement Living currently boasts a portfolio comprising 75 retirement villages, housing around 17,000 residents all over the country.
“We believe this is an exciting opportunity for Aware Super’s members, to increase our interest in a high-quality investment that makes a real difference to the lives of retirees every single day,” said Damian Graham, CIO of Aware Super.
Aware Super’s purchase includes not just a share of the retirement village portfolio, but its associated operating platform, development capabilities and its retirement living development pipeline.
“Strategically, we flagged some time ago our intent to further reduce our ownership of Retirement Living, consistent with our strategy to reallocate capital towards the delivery of our $112 billion development pipeline and grow our investments platform,” added Lombardo.
Lendlease now holds a 25.1% interest in the trust, with Dutch pension asset manager APG Asset management holding the remainder in a marginal minority interest of 25%.
“The overriding focus of the Retirement Living business is to provide current and future residents the highest quality residences, services and support,” said Dale Connor, CEO of Lendlease Australia.
Though Aware Super now owns the majority stake over Lendlease, the business will continue to trade under the Lendlease Retirement Living name.
“Through our deep relationship with Lendlease, and our years of experience supporting Australians as they prepare for, and transition to retirement, we see enormous potential for the future of retirement living,” said Graham.
Aware Super is currently a major investor in multiple Lendlease funds across its Australian investments platform, with the relationship between the two including the Lendlease Americas Residential Partnership, which invests in projects across major US cities.
“Aware Super’s acquisition of an additional interest in the Lendlease Retirement Living Trust is a vote of confidence in the quality of our team and their service offering, and further supports the execution of our Australia strategy,” concluded Connor.