The four shortlisted bidders for Lendlease’s 25.1% stake in retirement village operator Keyton have reportedly cut the company’s full valuation by at least 10% below $3 billion – despite a sector-record $3.85 billion sale of rival Aveo in June.
According to The Australian, Singaporean sovereign wealth fund GIC, the country’s largest super fund AustralianSuper, student accommodation operator and Aveo owner Scape Australia and Japan’s Nippon Steel Kowa Real Estate are through to the next round of bids after the first round closed on 1 July.
Lendlease had upped the value of its stake to $500 million last year. A $3 billion valuation would now imply a paper value of $753 million – but bidders appear to be unconvinced.
Keyton, jointly owned by Aware Super (49.9%), APG (25%) and Lendlease, operates 75 villages with 13,300 homes – larger than Aveo by footprint but seen as offering more upside, with a book value of $230,000 per established unit versus Aveo’s $385,000.
The group is targeting 400 to 500 new units annually, with a pipeline of 1,200-plus and 1,300 completed or under construction. Its 10 WA villages were put on the market via Cushman & Wakefield in late 2024 and are now reportedly in due diligence.
