Australian superannuation fund Aware Super, formerly known as First State Super, has agreed to acquire a 25% stake in Sydney-headquartered real estate investment group Lendlease’s retirement living business.
Following the transaction, Lendlease will retain its 50% stake in the retirement living unit, while Aware Super and Dutch pension fund APG Asset Management will each hold 25%.
APG acquired its 25% interest in 2017 as its first foray into the retirement living sector in Asia Pacific.
The Aware Super acquisition includes ownership of the retirement village portfolio and its associated operating platform, as well as its development capabilities and associated pipeline, according to a statement.
Lendlease said the retirement living business will continue to operate under the Lendlease brand.
“Following the impacts of bushfires, drought and COVID-19, we have seen a strong uplift in Australians considering the safety, security and affordability of retirement living,” Aware Super Chief Investment Officer Damian Graham said.
“This investment aligns with our overall property strategy which has an increased focus on the residential – including affordable housing, multi-family and retirement living – and industrial sectors.
Lendlease and Aware Super had already established their partnership in a $2 billion investment platform to acquire multifamily assets across gateway cities in the US. The 2018-incepted platform has recently acquired a 3.5-acre transit-oriented, mixed-use development site in Los Angeles.
Lendlease owns, operates and developers 75 retirement villages that cover more than 16,000 residents across Australia. Its business also includes retail and commercial assets.
The firm had $29 billion assets under management and $113 billion in development pipeline, according to its 2020 annual report.
Last year, Aware Super was merged with VicSuper, managing nearly $140 billion in assets.