Scape lines up its next retirement living move
The move follows Brookfield Asset Management’s sale of Aveo to Scape Australia and South Korea’s National Pension Service in June for $3.85 billion.
Aveo’s new owner, which has stated it wants to more than double its portfolio of student accommodation and retirement living units to 100,000 over the next five years, is reportedly set to buy a stake in another retirement village operator.
Lendlease owns 25% of Keyton, which has a book value of around $3 billion, and has been seeking to exit its stake for at least three years. Aware Super owns 49.9% and APG – one of Scape Australia’s backers – holds the remaining interest.
The Australian reported last Thursday that “Scape is believed to be deep in due diligence on a deal to buy part of retirement village operator Keyton,” adding that the process is now in “exclusive due diligence” for Lendlease’s stake.
Keyton last month sold its 10 Western Australian retirement villages, reducing its portfolio to 65 villages once settlement occurs. According to the report, Scape has also requested the option to assume management of Keyton and charge fees for doing so, estimated at around 0.5% if it secures the Lendlease shareholding.
The move follows Brookfield Asset Management’s sale of Aveo to Scape Australia and South Korea’s National Pension Service in June for $3.85 billion – a price Scape co-founder Craig Carracher later suggested was closer to $4.5 billion.
Analysts note there would be clear economies of scale from running both Aveo and Keyton. Gresham is advising on the Keyton sale process.
