Westpac, National Australia Bank, ANZ, Barclays and Malaysia’s MayBank have written the $1.45 billion refinancing for Australia’s leading retirement village provider.
Australia’s only ASX listed pure retirement village operator was privatised in August 2019 when Aveo announced its Board of Directors had unanimously accepted an offer of $1.27 billion for the 100% purchase of the company by the Canadian investment fund Brookfield.
That purchase cash came from a Brookfield Asset Management investment fund, and Brookfield has been keen to replace the $1.27B by bank cash before November next year.
Four years ago it would have been hard to get the cash from Australian banks, but they have been achieving record retirement village home sales for the past two years, with 1250 units in 2021 1504 in 2022.
At say $450,000 each and a 30% DMF, 1504 sales would have generated $203 million in DMF income.
Of equal importance is the fact that when Brookfield purchased Aveo, they had many hundreds of vacant homes which are now delivering Aveo the full $450,000 sale price.
The refinancing also gives Aveo up to $170 million for new capital works or acquisitions.
The SOURCE: The refinancing shows the market’s confidence in Aveo and its leader Tony Randello
