The developer will sell the business, which owns and manages 30 facilities across the nation, to Australian Aged Care Partners, which is controlled by funds managed or advised by Sydney-based Archer, Lend Lease said in a filing today. The company will receive a cash payment of A$200 million and a promissory note for A$70 million, it said. It will continue to own and operate retirement villages, McCann said.
Lend Lease took over the unit, which provides assisted living facilities for the elderly, then called Primelife Group, in December 2009, paying 35 Australian cents a share for the parts it didn’t already own. That was equivalent to about A$170 million, the Age newspaper reported on Dec. 15, 2009. The sale of the business announced today is part of the company’s strategy of divesting “non-core” assets, Chief Executive Officer Steve McCann said in the statement today.
“The aged care business is more closely aligned to health- care services than property and is therefore considered non-core for Lend Lease,” McCann said in the statement. “Lend Lease will use the sale proceeds to continue to deliver its core development pipeline in Australia.”
The sale is expected to be finalized by the end of March, the company said.
Sydney-based Lend Lease this month reported a 39 percent increase in profit in the six months to Dec. 31.
The shares rose 0.9 percent to A$10.73 as of 11 a.m. in Sydney, extending this year’s gain to 16 percent. That compares with a 9.1 percent advance for the benchmark S&P/ASX 200 index.
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