It is the largest direct real estate transaction in Australia’s history.
Joe Williams, Senior Vice President - Real Estate Private Equity at Brookfield Asset Management, took to LinkedIn after the finalisation of the sale of its Aveo retirement living business to student accommodation operator Scape Australia’s newly created parent business The Living Company.
"Buying a struggling business with a broken reputation for A$2.1 billion, turning it into the market leader, and then selling it for close to double in under five years, has been no mean feat," Joe said.
Chris Baynes, DCM Group CEO, wrote last month: Aveo transformation masterclass: turning $1.27B into $3.85B in 55 months
Joe said, "For those who know me well, you’ll be familiar with the journey we’ve been on since our acquisition in late 2019. While there have been challenges along the way, the experience has been deeply rewarding on a personal level — and a standout result for Brookfield and our investment partners. A few highlights from this transformative journey."
- $500 million of early asset sales spread over 50 properties and non-core business units to create a premium, east coast portfolio.
- $1.5 billion refinance and dividend recap, the largest ever in the sector.
- The first mezzanine loan in the sector.
- Over $500 million reinvested into development and strategic capex.
- Bolt on acquisitions which generated IRRs exceeding 70%.
- The successful bid and partnership with the NSW Government to redevelop the former Manly Hospital site.
- The successful defence of an inherited class action which had plagued the business and industry for six years, settled for a de-minimus amount and a public apology from the plaintiff law firm.
- As well as numerous industry records for sales, resident engagement and Net Promoter Scores.
"Outcomes like this are only possible through the tireless efforts of a large dedicated team - all of whom I am incredibly grateful for, a few of which I owe a special thanks.
"Thank you Matt Stephens and Nick Britten-Jones for your camaraderie and perseverance, for never backing down from a challenge and for being in the trenches every step of the way. And for Ruban Kaneshamoorthy and Ankur Gupta for your trust, guidance and leadership throughout. An incredible deal team!
"Thank you to Tony Randello for being an incredible CEO, mentor, and partner to work with. Everything you and your team have achieved is awe-inspiring, it’s been a career and personal highlight working with you.
"Special thanks also to Anthony Ibrahim and Andrew Warden for all things divestment and capex related, and Geoff Robinson for all your hustle and development expertise.
"And to our exceptional team of advisors - this wouldn’t have been possible without your smarts, intensity and focus - thank you!"
Brookfield Asset Management has left Scape with an operator of 65 nearly fully occupied retirement villages across Queensland, New South Wales, Victoria and Tasmania, with a portfolio of over 10,000 units with another 3,000 in its pipeline.
