The Christian Not for Profit has bought real estate investor Cromwell Property’s 50% stake in Paul Browne’s continuum of care private business LDK, which is valued at $260 million in just four years of operation.
Browne, a pioneer of today’s retirement living sector, founded LDK to create an integrated offering providing care in one location. Browne was involved in the creation of early operators Tall Trees, Seasons, Fairways and Freedom, which Aveo bought for $210 million in February 2016.
Cromwell provides funding to LDK through a combination of its equity contribution to LDK and $148 million (as at 30 June 2022) in secured interest-bearing loans, due to be repaid by June 2028.
Cromwell will receive a payment of $20 million from Anglicare Sydney for its 50% equity interest in LDK.
The deal - the first by Anglicare Sydney’s new CEO Simon Miller, the former Managing Director and Senior Partner in Boston Consulting Group – keeps LDK as a separate entity with an agreement Browne and LDK CEO Byron Cannon will advise Anglicare Sydney.
Browne told The Weekly SOURCE the investment by Anglicare Sydney is recognition of his 20 years in the wilderness championing aged care.
“We are proud of what we have accomplished with Cromwell over the past four years and look forward to continuing to deliver villages where our residents feel a true sense of belonging in this new chapter with Anglicare,” he said.
LDK will continue as a completely independent company but the attraction of LDK to Anglicare Sydney is to learn from LDK’s innovation and resident outcomes.
LDK Living has two continuum of care villages, its first purpose-built seniors’ village Greenway Views in Tuggeranong, Canberra, and The Landings in North Turramurra on Sydney’s Upper North Shore, which Browne bought in December 2018.
LDK has built and sold 300 homes in under two COVID-19 years at Greenway Views.
It has also been given planning approval to build a $143 million seniors village, modelled on Greenway Views, on 5.4 hectares of designated land on the edge of Yarralumla, 3.5km southwest of Canberra. It also has an option on a third greenfield site in Canberra.
“Anglicare Sydney’s investment in LDK is a very strong validation for our model and represents a transformational shift in the seniors living industry. It allows us to plan our villages in response to the sector demand, and cater to the discerning expectations of future residents,” LDK CEO Byron Cannon said.
Simon saw the purchase as a natural implementation of its present investment strategy.
“Our values and Aspire’s values align, and we look forward to partnering with them to deliver exceptional service for LDK’s current and future residents,” he said.
