Brookfield to sell retirement living platform for $3.85b to Scape
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The news: Brookfield Asset Management is selling its retirement living platform Aveo to student accommodation provider Scape and South Korea’s National Pension Service for $3.85 billion, in what is touted as the largest ever direct real estate transaction in Australia.
The numbers: The $3.85 billion headline figure is inclusive of debt. Brookfield acquired Aveo in 2019 at a valuation of $1.3 billion and said it has invested more than $500 million across the business.
Aveo owns more than 10,000 units in “premier metropolitan suburbs” across Australia’s east coast, according to a Brookfield statement.
The context: Aveo will be owned and managed by The Living Company, an entity that brings together all of Scape’s assets including student accommodation, build-to-rent and retirement living.
What they said: “Given the favourable market dynamics that underpin the continued growth of the living sector, we will look to invest further capital in living across Asia Pacific,” Brookfield Real Estate chief executive Lowell Baron said.
Greg Shaw, chief executive of Mulpha International, which retained a 15 per cent stake in Aveo when it was acquired by Brookfield in 2019, said “this transaction will set the foundation for further growth supported by favourable macro tailwinds”.
The sources: Brookfield media release, The Australian Financial Review, The Australian
