Stockland flexes its muscles
The property developer has made two strategic investments in the retirment living market during the last week.
Stockland has been flexing its muscles in the retirement village market with two strategic acquisitions in the past seven days.
In its first move, the property developer purchased a significant 14.4 per cent stake in retirement living operator, Aevum, from Babcock & Brown on 10 October.
The company paid close to $27 million in the deal which makes it Aevum’s largest individual shareholder.
Aevum operates over 2,000 independent living units and 200 aged care beds in its 22 villages – and is the largest for-profit provider of retirement accommodation in NSW.
“[It] is a conservatively managed company with a sound balance sheet,” said Stockland’s Managing Director, Matthew Quinn.
A few days later Stockland made its second move, securing a five per cent stake in FKP stapled securities, which could increase to 13 per cent through the partial sub-underwriting of a rights issue. The value of the deal could reach $80 million.
Stockalnd has been granted a two-month exclusive deal period on FKP’s retirement living assets while a review is conducted.
“As one of the largest participants in the Australian retirement living industry, FKP has built a quality portfolio of assets and has a strong development pipeline,” said Mr Quinn.
