Aveo’s owner, Canada’s Brookfield, has picked financial bankers from Australia and America to seek out buyers and $3 billion for the business.
Barrenjoey, the Sydney-based investment bank, is partly owned by UK bank Barclays, which in November last year was one of the five banks to underwrite Aveo’s new $1.45 billion debt facility.
New York-based Morgan Stanley has Richard Wagner as its Chief Executive Officer and Co-Head of Investment Banking at Morgan Stanley Australia.
Aveo has a leading 4% market share, ahead of Lendlease with 1.9% and Bolton Clarke 1%, according to IBISWorld, with 86 retirement villages with independent living units, serviced apartments, and its own home care service.
It is as good as it gets for retirement village operators with the latest PwC/Property Council Retirement Census stating its facilities are at capacity and residents are staying longer.
Aveo has moved from 1,000 units sold a year in 2000 to 1,200 to 1,500 units. In 2023, Aveo achieved 1,444 home sales.
“The majority of our communities are now sold out and have a growing wait list. With significant investment in renovation works, our communities are presenting beautifully, and this is supporting, not only our strong sales number, but strong price growth as well,” Claire Leonard, Corporate Affairs Manager, told The Weekly SOURCE earlier this month.
Brookfield has invested in the business since its acquisition under its leadership of Chief Executive Officer Tony Randello, who was appointed by Brookfield Asset Management, after being Managing Director of the then largest village operator in Australia, Lendlease.
Brookfield purchased the then listed Aveo in 2019 for $1.3 billion or $2 billion including debt in a sale at the time handled by Bank of America. The price was a 28% premium to the company’s undisturbed security price. If the $3 billion price is achieved, Aveo has grown by around $250 million a year.
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