Approximately 80 people witnessed Lend Lease's takeover of BBC on December 30 in Sydney, delivering management rights to 56 villages and 29 aged care facilities under the Primelife, Fini and Conform brands. Lend Leases new CEO Rod Fehring explained their view of the opportunity:
traditional development is a wasted sector - once a property is built it is sold and gone forever but with villages you share the capital gains forever
it's a unique market where buyers are motivated by other reasons than economics
despite the economic downturn the fundamentals remain the same
Lend Lease Primelife will have $80-$100 million in cash after the transaction with no other player in this position, which will present unique opportunities (and Lend Lease is geared at just 7%)
Departing CEO, John Martin, presented the 2008 results with a net profit after tax of $41 million, which was 19% ahead of forecast. Lend Lease has achieved a great coup, paying just $195 million for 43.2% ownership and management (with fees), not to mention instant leadership of a long-term growth sector.
Government Policy
Retirement Living Council demands Aged Care Act be delayed
Its Executive Director Daniel Gannon has listed six reasons why the Albanese Government should delay the 1 July introduction of the new Aged Care Act.
