Aveo parent continues to manoeuvre to get value out of its retirement investment

Aveo parent FKP is now openly discussing a route to get some or all of the Aveo villages into the stock exchange listed entity to unlock their value. FKP’s Chairman Seng Huang Lee is negotiating with the $533 million Retirement Village Group [RVG] which FKP is a major shareholder along with Macquarie Bank related parties. Aveo has a management contract for RVG villages. The idea is to set up a pure play retirement business that Aveo can place their own on villages in at a later time when complex owner issues have been worked out. Insiders say it will take a long time for the RVG deal to be shaped and it is likely that FKP’s secondary listed village business known as Forest Place Group will be engaged in taking the Aveo villages to the market. Making this easier is the fact that former FKP CEO, Peter Brown, is now chairman of Forest Place Group, placed there by FKP. Stockland will have to agree as they have first right to buy FKP owned Aveo villages.