BABCOCK & Brown has scored the management rights to a retirement village portfolio in New South Wales and Queensland.
The 12 retirement villages are owned by the Prime Retirement & Aged Care Property Trust, an unlisted fund. The 12 villages have 3600 units.
The transaction is expected to be completed before the end of August and Babcock & Brown intends to offer Babcock & Brown Communities Group the opportunity to complete the transaction.
Primelife, which will form part of BBC, currently operates via lease and management agreements several Prime Trust owned retirement villages and aged care facilities.
BBC would be the largest retirement living company listed on the Australian stock exchange and is expected to have assets of about $1.8 billion, spread across
Babcock & Brown’s global head of corporate finance Rob Topfer said the option provides BBC with a number of potential opportunities.
“It will provide BBC the ability to secure management rights over an additional 3,600 retirement living units across
“Including units under development in BBC and in the Prime Trust villages, this acquisition would take BBC’s portfolio of deferred management fee exposures to over 12,000 retirement units,” he added.
“If the option is exercised, we do not expect significant additional overheads and we expect the transaction will be immediately earnings accretive to BBC,” he added.
Australian Property Journal
