Stockland: Settlement to promote 4 Retirement Living villages in Victoria
Stockland has swapped contracts with Australian boutique fund manager Prime Value Asset Management Limited to divest four Victorian villages from its Retirement Living portfolio for a total of $ 89 million. This corresponds to a discount on the book value from June 2020 of around 10 percent. Three of the villages are older than 30 years, the average age is 28 years.
The sale relates to the Cameron Close Retirement Village in east Melbourne, Bundoora Retirement Village and Latrobe Retirement Village in northeast Melbourne, and Long Island Retirement Village in Seaford. The four villages will be operated by Centennial Living upon completion of the sale.
Andrew Whitson, Group Executive and CEO of Stockland Communities, said: ‘The sale of these assets is in line with our active capital recycling strategy as we focus on portfolio transformation and reinvestment opportunities in our tenancies and in our broader business check .
“As part of our focus on improving ROI, we will continue to consider future sales of non-core villages that have limited opportunities to deliver on our customer value proposition to drive demand,” said Whitson.
Prime Value Asset Management is a multi-award winning fund manager. The Melbourne-based company has been in existence for over 22 years and now manages approximately $ 1.5 billion in investor funds across a range of stocks, income securities, real estate and alternative assets. Centennial Living is an Australian retirement home operator with extensive experience managing and operating retirement villages.
The sale has no impact on the terms of the contract with existing residents and Stockland will work closely with the new owners and operators to ensure a smooth transition for residents.
The completion of the four villages is planned for the coming weeks, and Stockland will continue to operate the villages until they are settled.
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Stockland Corporation Limited published this content on December 09, 2020 and is solely responsible for the information contained therein. Distributed by the public, unedited and unchanged, on December 09, 2020 22:58:00 UTC