stockland newport
Stockland’s retirement village in Newport, Queensland. Image – Stockland.
  • Stockland Retirement Living is one of the largest retirement living providers in Australia
  • EQT has purchased the portfolio at almost 2% less than Stockland's book value in Dec 2021
  • Over 300 employees will transfer to EQT as part of the transaction

Developer Stockland (ASX: SGP) has announced an exit from the retirement living arena, selling its 58 village-strong portfolio to EQT Infrastructure for $987 million.

Stockland Retirement Living is one of the largest retirement living providers in the nation, with 58 villages homing 10,000 residents along the eastern seaboard. Additionally, there is a pipeline of 1,300 new units across 10 projects.

Due to the ageing population and increased popularity surrounding the sense of community and security afforded by retirement villages, demand for retirement living has increased significantly over recent years.

Stockholm-based EQT, which has a global track record in aged care, will focus on increasing services provided to residents while investing in greater technology and digital initiatives.

Tarun Gutpa, CEO Stockland, said he was delighted to have a found a strong owner and operator to acquire their retirement portfolio.

“We are confident that EQT will be the right custodian for the residents and employees, and are well placed to support the continued growth of the high quality Retirement Living platform.”

Tarun Gupta
Tarun Gupta of Stockland. Image – LinkedIn.

“We have an accomplished and dedicated team in our Retirement Living business, who will transfer to EQT at completion of the transaction. They continue to be focused on providing the best possible care and resident experience across the portfolio.”

Tarun Gutpa, Stockland CEO

“The announcement today does not impact on any of the arrangements with our residents. It will be business as usual for our residents, noting on completion they will have a new partner with significant experience in running industry leading retirement living villages.”

EQT’s head of Asia Pacific, Ken Wong, added his excitement about continuing to develop and operate Stockland’s high-quality retirement villages.

“With an aging Australian population and increased focus on enabling Australians to age in place, we are excited to have the opportunity to use our significant global experience in the aged care sector to enhance the range of services provided to current and future residents of Stockland’s villages.”

ken wong
Ken Wong, EQT. Image – LinkedIn.

“From the outset we’ve been very impressed with the team and the first-rate retirement living portfolio Stockland have built.

“Stockland Retirement Living is a clear leader in the Australian retirement living space and we are excited about working together as we transition the business toward a standalone platform that continues to develop and operate high-quality retirement villages.”

Ken Wong, EQT head of Asia Pacific

Settlement expected late FY22

The disposal price reflects a ~ 1.9% discount to Stockland’s December 2021 book value of $1,006 million.

Due to the transaction, over 300 employees will transfer to EQT.

The sale is expected to result in a taxable capital gain for Stockland, the exact quantum of which won’t be determined until the transaction is completed. Stockland currently has carried forward tax losses which likely will be sufficient enough to cover the capital gain tax on the sale.

The completion of the transaction will still need to be approved by the Foreign Investment Review Board, with settlement expected in late FY22.

Stockland is undertaking a range of projects across its numerous expertise’s, which includes a reactivation at Western Sydney University that was announced this week.

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