The student accommodation provider, working with Macquarie Capital and Deutsche Bank on due diligence, is likely to call on the two banks and Scape’s capital partners to buy the $3 billion plus business owned by Brookfield.
Brookfield put Aveo up for sale in June last year and the Australian Financial Review reported on Monday it “granted Scape exclusivity following a frenetic final round of bidding”.
Scape founders Craig Carracher and Stephen Gaitanos reportedly have “strong support for a transaction with existing and new investors”. They launched Scape in 2014 and it has become the biggest purpose-built student accommodation owner and operator.
Brookfield bought the then-listed Aveo (previously known as FKP) in 2019 for $1.3bn, or $2bn including debt. Aveo has a sector-high 4% market share in retirement living with Lendlease (Keyton) at 1.9% and Bolton Clarke 1%, according to IBISWorld.
Established in 1970, Aveo has 67 retirement facilities along the eastern seaboard. It has a deferred management fee model but also offers an upfront payment or bond payment option.
In August last year, Aveo announced it had sold 13 of its South Australian villages for $122 million to Not For Profits Resthaven and Eldercare, both part of the UnitingCare Australia network. This followed the sale of Aveo’s Kings Park Retirement Village, 4km south of Adelaide's CBD, to Adelaide investment firm ICAM; and Ackland Park retirement village to Auscare. Aveo also sold five regional retirement villages to Teman Communities in July 2024.
Browse Aveo’s retirement villages on the #1 listings website villages.com.au
