Aware Super spends $525M for 75% stake in largest retirement village operator

Australia's third-largest superannuation fund has announced it will acquire Lendlease’s 25.1% interest in retirement village operator Keyton.

Keyton is Australia’s largest owner and operator of retirement villages with 66 villages and more than 15,000 residents across Australia.

Lendlease's 25.1% stake in the retirement living giant has been for sale since June 2023, when the developer announced it had asked investment bank Gresham to sell its remaining interest in the village operator.

In August 2024, it valued the stake at $500 million. Today, Lendlease said the figure agreed is $525 million.

Aware Super acquired its initial interests in Keyton in 2021 and 2022. Aware Super will hold 75% and APG retains an existing 25% interest.

“Increased ownership in Keyton reflects Aware Super's strong belief in the business and our conviction in retirement living which aligns with the fund’s property strategy through exposure to long-term senior living demand backed by an ageing demographic and a structurally undersupplied sector," Aware Super’s Head of Property, Alek Misev, said.

“Keyton’s management team has a proven track record of strong and consistent performance, benefiting from a geographically diverse portfolio, strong occupancy rates, and a robust development pipeline that positions it well for sustained growth.

“Aware will continue to progress key strategic initiatives that support Keyton’s long-term strategy, operational performance and the ongoing delivery of high-quality retirement living."

Aware Super, which also owns Oak Tree Retirement Villages, said completion of the transaction is subject to conditions including regulatory approvals, with completion targeted for 1H FY27.