Lendlease prepares to sell down retirement living operations to 25% to focus on development including build-to-rent – three years after selling off 25% stake

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In a major shake-up for the Australian village sector, the property group has flagged that it will sell off $1 billion-plus in assets – including 50% of its retirement living portfolio – as it moves to focus on expanding its development pipeline from $30 billion to a huge $113 billion by 2030 – just 10 years away.

As we covered here, Lendlease already offloaded 25% of its retirement village business for around $450 million to the Dutch pension fund APG.

In a 52-page strategy update to the market, the group says it plans to divert funds to new developments including build-to-rent and mixed use and increase capital to its funds management business.

They also plan to exit their US telecommunications business.

We asked Lendlease for an update on its plans for its retirement living business in Australia.

“We’ve previously indicated to the market our intention to reduce our 75 per cent stake in the Retirement Living business,” a spokesperson told us.

“Last week, we confirmed our ambition to sell up to an additional 50 per cent of the business over time to leave us with a long term holding of 25 per cent.”

“To be clear, we’re not planning to exit the Retirement Living sector, rather, we’re planning to sell down our current 75 per cent holding to 25 per cent.”

“We don’t foresee any impact to residents or the management of the Lendlease retirement villages. The Retirement Living business will remain a key part of Lendlease’s business and our focus remains on providing quality services and support.”

Lendlease did not indicate whether it planned to maintain its village operations in China, but given the international focus of its new direction, it seems likely that these will also remain part of the business.

They will have some competition for investors however – see this story.


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