Stockland has agreed to sell its retirement living business, one of the largest providers of retirement living in Australia, to EQT for $987 million.
Stockland’s retirement living business has more than 10,000 residents in 58 villages across Australia, and a development pipeline of 1,300 new units.
The seller said the disposal price represented a 1.9% discount to its December 2021 book value of $1.006 billion.
EQT, an investment manager with €73.4 billion in assets under management, said it had a well-established track record in the aged care sector, globally as well as within Australia and New Zealand.
The buyer said it would focus on supporting Stockland’s Retirement Living portfolio to grow its footprint, increase the range of services provided to its residents, and invest in technology and digital initiatives to further improve the company’s offering.
“Stockland Retirement Living is a clear leader in the Australian retirement living space and we are excited about partnering with the company and supporting its ability to continue to develop and operate high-quality retirement villages,” Ken Wong, EQT’s Head of Asia Pacific, Infrastructure said.
“With an aging Australian population and increased focus on enabling Australians to age in place, we are excited to have the opportunity to use our significant global experience in the aged care sector to enhance the range of services provided to current and future residents of Stockland’s villages.”
Stockland Group CEO Tarun Gupta said he was delighted that they had found a strong Retirement Living owner and operator to acquire Stockland’s Retirement Living platform.
“EQT is a purpose-led organisation with a well-established track record in healthcare, aged care and retirement living,” he said.
“We are confident that EQT will be the right custodian for the residents and employees, and are well placed to support the continued growth of the high-quality Retirement Living platform.”
EQT Infrastructure was advised by Goldman Sachs and King & Wood Mallesons.
The megadeal follows Australian Unity Healthcare Property Trust’s purchase of three aged care properties in Queensland in a $93.65 million sale-and-leaseback deal with McKenzie Aged Care Group last year.
Interested in the commercial portfolio deals? Take a look back at Australia’s biggest commercial property portfolio sales in 2021.