Stockland starts selling down its stake in Aveo

Last Thursday Stockland commenced selling its 14.3% stake in FKP’s Aveo retirement business. Stockland netted approximately $13 million by selling just under 3% – given its subscription agreement to sell no more than 3% in any one month. It received $1.50 per share. Stockland purchased its strategic holding in 2008/9 with the unfolding of the GFC, obtaining a first option to purchase the Aveo business from FKP, a strategy now abandoned by its recently appointed Group CEO. The shares were then trading at around $4.00. FKP has announced it is moving from being a diversified property group to a pure play in retirement and care operator with a name change to Aveo Group.