The Financial Review, quoting sources, claims four companies want to buy the leading retirement village operator owned by Brookfield, stating the leading student accommodation developer Scape is through to the second round of the possible $3.5 billion auction. 

The report also states Aveo’s sellers Morgan Stanley and Barrenjoey have split Aveo’s interested parties into two – outright potential owners and operators like Scape and Charter Hall, and the second group being potential capital partners AustralianSuper, which has assets of $300 billion (2023). 

Aveo, led by CEO Tony Randello, was the nation’s leading retirement village operator before selling its South Australia portfolio and putting up its two Tasmanian villages for sale to become an East Coast operator and a better proposition to sell. Brookfield put Aveo for sale in June last year. It holds 6% of the retirement living sector and operates with a $1.6 million average median house price, higher than its competitors, enjoys high operating margins from 100% capital gains contracts, and has a 94% occupancy rate, bidders have been told. 

Brookfield agreed to buy Aveo in August 2019 for $1.27 billion and settled in December 2019. It has been the effective owner for three years and seven months. This means Brookfield will have doubled its money out of the deal.   

ScapeAustraia’s founders Stephen Gaitanos and Craig Carracher (main picture) earlier this month revealed another $700 million commitment from South Korea’s National Pension System for its first Build to Rent venture in Marrickville, 7km southwest of Sydney’s CBD and . 

The financial Review said Scape had appointed Macquarie Capital and Deutsche Bank to advise on its bid for Aveo and was preparing to submit a binding offer for Aveo towards the end of March.  

Brookfield and Scape did not comment.  

See Aveo’s retirement villages and availability on the #1 website villages.com.au