Lend Lease acquires Prime Trust properties
The property group has purchased nine facilities and four villages in a deal worth tens of millions of dollars.
Lend Lease has announced that it is purchasing nine aged care facilities and four retirement villages from Prime Retirement and Aged Care Property Trust.
In total it will pay $76.8 million, excluding costs, and this represents an initial yield of 12.5 per cent.
At the moment, the facilities and villages are leased and managed by Lend Lease Primelife (LLP) and this arrangement will continue after Lend Lease completes the deal.
“This acquisition is important for Lend Lease’s aspirations in the retirement sector,” said the group’s CEO and Managing Director, Steve McCann.
“It enables LLP to focus on operating its business as a leading manager of retirement and aged care assets in Australia. The acquisition presented Lend Lease with a strategic opportunity to invest capital at an attractive yield.”
Settlement of nine of the acquired properties is expected to be completed by the end of September.
The remaining four properties cannot be settled until a number of consents are given, including approval from the Department of Health and Ageing. Lend Lease expects to receive to hear from the department within the next three months.
LLP and Lend Lease have granted each other rights in the event of disposal of these assets, which lapse on 30 June, 2011.
