Aveo auction: Gaw Capital in final stage due diligence, says Street Talk

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The Hong Kong-based real estate private equity firm is one of two parties in final stages of talks to purchase Aveo – and The AFR’s rumour mill section, ‘Street Talk’, reports it is considering a bid for the organisation in full.

Street Talk says it understands that Gaw and its rival bidder (unknown) was given “an extra few weeks diligence following Aveo’s receipt of final bids”, and that both parties have been told Aveo would like to see a deal in the next four weeks.

This is not Gaw’s first venture in Australia’s retirement sector. It is developing a $600 million pipeline of retirement living projects in partnership with Brisbane’s GreenFort Capital – including Glen Browne’s new project, Reside Communities, which has already acquired two operating villages and one development in QLD, as we reported here in March.

Amid speculation that is was about to announce an all-of-company transaction, Aveo paused the trading in its shares at 3pm on Tuesday 30 April after being contacted by the ASX over concerns about a share price spike, saying:

“Due diligence by the parties is continuing and as advised by Aveo in previous communications to the market, there is no certainty than an acceptable offer will eventuate for Aveo”.

Aveo has a portfolio of 16,417 units and 1,072 beds in Australia – according to its most recent annual report – including its development pipeline. The organisation’s largest shareholder is the Malaysia-listed Mulpha Group, whose major Asia-based activities are centred in Hong Kong.

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