Diversified property giant Lendlease has sold a quarter of its retirement living business to Dutch pension fund investment manager APG Asset Management for an estimated $470 million.
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The transaction covers all components of the retirement business, including ownership of the established retirement village portfolio, the operating platform and the business's development capabilities and pipeline, Lendlease said.
Lendlease first mooted that it was "exploring the introduction of capital partners to help fund the growth of the business" in September.
The group has $1.738 billion invested in retirement ownership. With the forward pipeline of assets in development, the end value of the deal is around $470 million.
A write-down of the value of deferred tax assets in the retirement business and transaction costs would see the deal result in a net loss after tax of about $35 million, managing director Steve McCann said.
Mr McCann said the group has made "solid progress" after its strong 2017 financial result but warned next year's result would be impacted by "underperformance" in the Australian construction business.
Lendlease expects the underperformance to be offset by better results in other parts of the business.
APG's other Australian investments include a local platform set up with British-based student accommodation provider Scape to fund projects in Melbourne, Brisbane and Sydney.
Lendlease's retirement living portfolio contains 12,433 units across 71 villages - most ot them heavily weighted to Victoria, NSW and Queensland - but it also has a presence in WA, SA and the ACT.
