Property group Stockland has acquired Australian Retirement Communities (ARC), the largest privately-owned operator in the domestic retirement market, for $329 million.
The ARC business consists of 17 retirement villages containing 2,850 independent living units and three villages under construction with 560 units, along with a development pipeline of six villages with 825 units.
Stockland will amalgamate ARC with its Retirement Living business which has a medium term development pipeline of more than 3000 homes and units.
Stockland's development division head Denis Hickey said the ARC business was an ideal strategic fit and will accelerate the company's growth in the sector.
"The acquisition of ARC will position Stockland as a top five retirement village operator in Australia when combined with our extensive development pipeline," Mr Hickey said.
Stockland bought ARC from its founders John, Russell and Graham Knowles and ARC managing director Ian Ball.
Mr Ball said the time was right for ARC to enter its next growth phase and Stockland had demonstrated its expertise in the residential sector.
Stockland said the acquisition will have a neutral impact on its 2006/07 earnings and will be accretive from the start of the 2008 financial year.
Stockland plans to undertake an institutional placement of new stapled securities to raise around $300 million through a bookbuild jointly managed by UBS and Citigroup.
It said all existing security holders will be able to take part in a security purchase plan on the same terms as the institutional placement.
Earlier this week, Stockland announced its first foray into the UK market with STG170 million ($A432 million) acquisition of property development and investment group Halladale.
Stockland securities were put into a trading halt this morning and last traded at $8.85.
