once llc 's holding is approved we see rise above 50!
Retirement villages change hands in aged care property shakeup by Sarah McDonald | Friday October 3 2008 - 07:35am Troubled investment bank Babcock & Brown has offloaded some of its retirement village interests to Lend Lease Corporation.
LLC, which is listed on the Australian and New Zealand stock exchanges, is purchasing a shareholding in Babcock & Brown satellite Babcock & Brown Communities and taking over the management contract for the properties in the portfolio.
BBC operates 56 retirement villages and 29 aged care facilities in Australia and New Zealand.
These include Mayfair, Parklane and Knightsbridge on Auckland’s North Shore, Ocean Shores at Mt Maunganui and The Peninsula Club at Stanmore Bay.
After the deal is concluded, LLC will hold a 41% stake in BBC. Its total cash investment will be $A236.8 million.
After LLC becomes manager, it intends to conduct a “strategic review of BBC’s assets and operations.”
BBC has been under siege recently as Babcock & Brown looks to reduce its investment in satellites, with a smaller competitor, Prime Retirement and Aged Care Property Trust, launching a $A130 million takeover last month.
LLC purchased a strategic 7.22% stake in BBC in mid 2008 to, it says, gain exposure to the rapidly growing retirement sector.
But the stake also gave it a prime role to play in any takeover.
The transaction is subject to satisfactory discussions held with BBC’s banking syndicate; shareholder approval; and regulatory approvals, including from the Overseas Investment Office.
BBC Price at posting:
38.0¢ Sentiment: LT Buy Disclosure: Held
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