Reported $1B-plus price tag for Infratil and NZ Super-owned RetireAustralia – Brookfield believed to be interested

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RetireAustralia, which was bought by infrastructure investor Infratil and government-owned NZ Super for $640 million in December 2014, is reportedly being offered for sale for over $1 billion.

The Brisbane-based retirement village owner had over 3,700 independent living units and apartments across 28 villages in NSW, SA and QLD when it was sold by global investment banking giants Morgan Stanley and JP Morgan eight years ago.

Today, RetireAustralia has over 5,000 residents across 29 retirement villages in the same three states with an integrated home care offering, four development projects under construction, and a significant development pipeline. The Green Tarragindi (pictured), 8km from Brisbane, will become the 30th village in 2023 and cements RetireAustralia’s position as the fifth biggest retirement village provider behind Lendlease, Stockland, Aveo and Retirement Villages Group.

Under CEO Dr Brett Robinson, RetireAustralia contributed operating earnings of $6.3 million to Infratil’s HY22 report.

The Australian today reported private equity business Brookfield, which bought Aveo’s retirement business for $1.3 billion in 2019, is taking a look at the retirement village operator. Brookfield, which is on a buying spree, was an underbidder in the recent Stockland Retirement Living auction, along with Blackstone and Kohlberg Kravis Roberts.

“We continually assess the shape and structure of our portfolio to ensure it delivers the best long-term value to New Zealanders. With a strong management team in place and the business performing well, it is time to consider what ownership structure is best for RetireAustralia and for us,” said NZ Super Fund Senior Advisor Real Estate Toby Selman in a statement.

Infratil’s investment is principally in energy, transport and social infrastructure businesses and it appears that the two owners (50% each) think now is a good time to make a profit on RetireAustralia.