In 2008 Stockland commenced buying FKP shares. They quickly achieved 15% ownership and in the dark days of the GFC negotiated first right to purchase the Aveo business from FKP. That uncertainty has been hanging for four years as a question mark on Aveos future. This week the new Stockland CEO, Mark Steinert, has come out and stated that they will walk away from this strategic position, preferring to collect the approx. $70M the shares are worth. This will give substantially more certainty to FKP (which is awaiting security holder approval to be renamed Aveo Group) and CEO Geoff Grady who is building support with institutional investors for his vision of Aveo being the largest pure retirement operator in Australia.
Opinion
RIP: We are seeing the death of the family-run aged care operator
It feels like I am writing an obituary to family-run aged care facilities. Once the backbone of the sector, multi-generation operators are now selling out at a pace not seen before. The sell-off is accelerating, with three landmark deals in just two...
