For seven years, Stockland has been looking for a buyer or capital partner for its Retirement Living business.

CEO Tarun Gupta (pictured) announced last week that it had sold the 58 villages and 10 development projects underway to Swedish investment firm EQT Infrastructure (EQT) for $987 million, which was near its $1 billion value.

The HY22 Finances showed 415 sales in the past six months in Retirement Living, with last November the highest monthly result on record. The CEO said Retirement Living was delivering a 3% cash profit which was not up to Stockland’s expectations.

However, he said a bigger issue for retirement owners and operators is the “continuum of care” that residents need as they age.

“They’re living longer, and the average age in our retirement villages today is around 82 years,” he said.

“So, they need much more care. The sector’s moving into more what you would call healthcare with co-location of aged care capabilities.”

An increasing number of operators sell their product on providing the continuum of care. For example, LDK Seniors’ Living is marketing its ‘One Move Promise’.

Tarun did not see the economic sense in paying for that capability at Stockland and decided to sell the division and look to expanding its land lease offering. Stockland is joining land lease operators Aspen Group, Ingenia Communities, Lifestyle Communities, Palm Lake Resort, Serenitas and Mirvac.