The MFS Diversified Group has bought the Westpac’s Village Life Property Trust.
MFT paid $110 million for the 23 properties portfolio including 10 Village Life villages and 13 managers’ unit.
MFT is also a 19% shareholder in Village Life.
MFT now has 49 properties in its portfolio with a combined asset value of approximately $272 million.
MFT chief executive Craig White said the transaction would further enhance the geographic and sector diversification of MFT’s portfolio and provide significant value to both MFT and Village Life, the operator of the retirement villages.
Village Life’s chairman Greg Gardiner said the sale contract provides for the sale of the Village Life asset portfolio on the basis that the current lease arrangement between Village Life and the VLPT remain in place.
“Village Life has previously indicated that the lease arrangement with VLPT were onerous and has been advised by the MFS Diversified Group that the MFS Diversified Group will work with Village Life immediately upon settlement to restructure the current lease arrangement,” Gardiner added.
The transaction is expected to be complete before June 30, 2006.
By Adam Parsons
