Stockland decides to bail out of FKP/Aveo strategic holding, ending one of the biggest questions the retirement sector

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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 Aveo’s 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.

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The Weekly SOURCE is the leading media for retirement living and aged care businesses, delivering sector-specific news through four mastheads. Operating as part of The DCM Group, The Weekly SOURCE also provides a directory of proven sector specialists and an insights exchange.