Lendlease announced on Friday that one of Australia’s largest superannuation funds, Aware Super, had entered into an agreement to acquire a 25 per cent interest in the group’s retirement living business.
Lendlease is one of Australia’s largest owners, operators and developers of retirement villages with more than 30 years’ experience in the sector. Its portfolio comprises 75 retirement villages that are home to more than 16,000 residents across Australia.
The Aware Super acquisition includes ownership of the retirement village portfolio and its associated operating platform, as well as its development capabilities and associated pipeline.
The Retirement Living business will continue to operate under the Lendlease brand and the network of retirement villages will continue to be managed by Retirement Living.
Lendlease will hold a 50 per cent interest in the Retirement Living business with Dutch pension asset manager, APG Asset Management, and Aware Super each holding a 25 per cent interest.
Aware Super’s investment in the Retirement Living business extends an already strong relationship between the two organisations including the Lendlease Americas Residential Partnership that invests in urbanisation projects across Chicago, Boston, New York and Los Angeles. Aware Super will acquire its 25 per cent interest in the Retirement Living business at book value.
“We’re delighted to welcome Aware Super as a strategic partner to our Retirement Living business. We will continue to provide quality services and support to over 16,000 residents in our retirement villages across the country,” said Kylie Rampa, Lendlease Property Chief Executive Officer.
“As a leader in the retirement sector, we’re committed to maintaining our focus on supporting the needs of Australia’s ageing population. 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,” she added.
“We’re excited to be investing in the Lendlease Retirement Living business alongside experienced partners in this growing sector of the property market. Following the impacts of bushfires, drought and COVID-19, we have seen a strong uplift in Australians considering the safety, security and affordability of retirement living,” said Damian Graham, Aware Super Chief Investment Officer.
“This investment aligns with our overall property strategy which has an increased focus on the residential – including affordable housing, multi-family and retirement living – and industrial sectors,” added Graham.