Lend Lease to buy out remaining Primelife securities
The property developer plans to pay $170 million to purchase the remaining 57 per cent share in Primelife.
Multinational property and investment corporation, Lend Lease has announced plans to buy out the remaining securities in the Lend Lease Primelife Group at a cost of $170 million.
Lend Lease currently owns 43.2 per cent of Primelife and it also manages the group.
The announcement comes after Lend Lease acquired nine aged care facilities and four retirement villages from the Primelife group in August.
The transaction is subject to a number of conditions, including assessment from an independent expert.
Primelife’s directors have thrown their support behind the proposed bid, stating that they will encourage shareholders to vote in its favour.
Lend Lease has offered to pay 31 cents for each of the remaining ssecurities in Primelife.
In a statement, it said the transaction would lead to an “attractive outcome” for Primelife shareholders.
“Lend Lease firmly believes in the long term fundamentals of the retirement sector,” said the CEO of Lend Lease, Steve McCann.
“Together with the recent acquisition of villages from Prime Retirement and Aged Care Property Trust, this transaction consolidates our position in the sector, and is consistent with our strategy of investing in growth opportunities and leveraging our integrated property model.”
At the end of the last financial year, Primelife had a bank debt of $460 million which it needs to reduce to $350 million by June next year.
Lend Lease has signalled that it does not wish to sell assets or raise capital to reduce the debt as this would impact negatively on share prices.
