http://www.theaustralian.com.au/business/property/retirement-vill...

http://www.theaustralian.com.au/business/property/retirement-village-assets-battle-hots-up-as-us-private-equity-firms-ermerge-as-contenders/story-e6frg9gx-1225901299595


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A HANDFUL of US private-equity firms have emerged as contenders to buy three large retirement village assets valued at about $2.5 billion.

Apollo, Morgan Stanley and JPMorgan's private equity arm have been named as interested parties looking over the ING Real Estate and Community Trust, Becton and the unlisted AMP-Meridien.
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Collectively, ILF, Becton and AMP-Meridien hold assets, valued at about $2.5bn, but the combined market capitalisation of ILF and Becton group was only $37m yesterday. This latest round of consolidation in the $50bn retirement industry is reminiscent of 2007 boom, when Macquarie Group and Babcock & Brown did record-breaking deals.

However, prices being negotiated will reflect a sector hitting the bottom of a cycle.
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A Sydney investment banker said Morgan Stanley was looking over Becton to see if it was possible to recapitalise the business.

But there is a general feeling in the industry that many parties had pored over Becton's books and walked away because of the many problems in its trusts.

Besides, Becton has a joint venture partner, the Oman Investment Fund, a sovereign wealth fund, in its retirement business.

The trust has villages and development projects totalling $380m.

Becton chief executive Matthew Chun was unavailable for comment yesterday.
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