With the confirmation of the sale of EQT, Stockland’s 20-year era in the retirement village industry is over

Stockland, the second-largest operator of retirement villages in Australia after Lendlease, informed the ASX on Friday that it had ended its long association with owning and operating retirement villages following the completion of the sale of $987 million from its Retirement Living division to global investment firm EQT Infrastructure.

Stockland CEO Tarun Gupta (pictured right) announced on February 23 that he had ended a seven-year search for a buyer for his Retirement Living portfolio after reaching a binding sale and purchase agreement with EQT Infrastructure.

The sale price represented a 1.9% discount to Stockland’s December 2021 book value of $1.006 billion.

“The sale of the Retirement Living business is an important step in executing Stockland’s strategy. I thank everyone at Retirement Living for their contributions over the years, and for their focus and commitment during this time of transition,” Tarun said in the statement to the ASX.

The agreement includes 58 retirement villages and 10 ongoing and planned development projects, with more than 300 Stockland employees transferring to EQT Infrastructure.

Stockland has been one of the nation’s largest retirement village operators since it began investing in the sector some 20 years ago as part of the strategy of former Stockland strategist David Pitman,” Residential, Retail and Retirement”. The strategy was quietly abandoned in 2017.

In February, Stockland announced that it had formed a new $4 billion Stockland residential rental partnership with Japanese real estate investor Mitsubishi Estate Asia to drive growth in its land rental business and expand its third-party capital platform. .

To shore up its position in the crowded land lease market, Stockland spent:

  • $18 million for a 12.7ha block, at Armstrong Creek, near Geelong, VIC, for a 50+ year-old land lease community of 250 homes; and
  • Around $60m for a 26.12ha farm in Curlewis, another suburb of Geelong, for a land lease community and traditional housing estate. There will be 325 houses in the land development and 100 traditional houses.

EQT Infrastructure has announced its own overhaul of the Stockland Retirement Living business – and a new CEO and President.

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