Cushman & Wakefield is selling the Western Australian portfolio of 1,568 independent living units and 71 independent living apartments for the nation’s largest operator of retirement villages, which is owned by Aware Super (49.9%), APG Asset Management (25%) and Lendlease (25.1%).
"Our WA villages are in great shape and its strong performance will have appeal to potential buyers. The time is right for us to capitalise on this opportunity," said Keyton CEO Nathan Cockerill (pictured left).
"Our 10 villages make up a fantastic, mature portfolio that has built up a strong trading position over the last number of years and is performing well with record low stock."
Lakeside Village (Bibra Lake), Parkland Villas Booragoon, Woodstock West (Bunbury), Parkland Villas Ellenbrook, The Pines (Ellenbrook), Parkland Villas Mandurah (Halls Head), Harbourside Village Mindarie, Homestay Village (Queens Park), Parkland Villas Woodlands, and Timberside Villas (Wood Vale) are being offered in a package.
Nathan said when Lendlease's Retirement Living business was rebranded in June 2023 that the the business was targeting another 7,000 homes as it looks to capitalise on the growing demand for seniors’ housing, including the potential to expand into land lease communities. In July this yar, Keyton bought the 25,830sqm site of the former Australian Roads Research Board (ARRB) headquarters, with its 13 buildings, in Vermont South, 26km east of Melbourne's CBD, its first land acquisition.
"Divesting a portfolio of assets may seem counter-intuitive to our growth strategy, however, for a business of our size, which is looking to expand, we need capital to take advantage of the strongest growth opportunities in the Australian retirement living market," Nathan said.
"Selling a part of our portfolio, which is in prime condition to attract a strong price then allows us to put the funds earned from the sale back into opportunities that offer the greatest potential growth and future success for Keyton.
"The clustering of our villages will also help us achieve some operational efficiencies to help contain our costs over the longer term."
Aveo last month sold 13 retirement villages in South Australia with 1,033 units for $122 million, so expect a similar figure for Keyton's WA portfoilio. The operator will still own and operate villages in NSW, ACT, Victoria, Queensland and South Australia.
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