The Living Company – owner of Scape Australia, XO Living (Build to Rent), and the recently acquired Aveo retirement portfolio – is reportedly among three bidders for Lendlease’s 25.1% stake in Keyton, with bids due by 2 October.
According to market sources, the other contenders are:
- AustralianSuper, which is working with MA Financial, and
- Singapore’s GIC, advised by Rothschild.
Investment bank Gresham Partners has been seeking buyers for Lendlease’s stake since June 2023. Oak Tree Retirement Village owner Aware Super already owns 49.9% of Keyton, while Dutch pension fund APG Asset Management holds 25%.
Lendlease has been gradually exiting the sector over the past decade. In 2017, it sold 25% of Lendlease Retirement to APG for $450 million. Four years later, another 25% went to Aware Super for around $420 million, followed by a further 24.9% sold to Aware Super for $490 million in April 2024.
Keyton’s value proposition
For more than 30 years, Lendlease was a dominant force in retirement living, building a portfolio of 75 villages with more than 13,000 homes. Last year, it valued its remaining Keyton stake at $500 million.
Keyton has been pitched to prospective buyers as one of the sector’s largest platforms, with:
- 13,300 units,
- 5 million sqm of land,
- a 1,200-unit development pipeline, and
- a book value of $230,000 per established unit.
Why The Living Company?
Founded by Craig Carracher and Stephen Gaitanos, The Living Company has emerged as a heavyweight in residential living, now managing more than 30,000 units.
The duo have a track record with APG, having previously partnered in student housing. Their scale and operational expertise position them as credible bidders capable of driving down operating costs and improving yields at Keyton.
Watch this space then.
