Blackstone, Cindat Said to Bid for LendLease Senior Housing

  • Singapore’s GIC also submits offer for A$1 billion stake
  • Investors seek exposure to demand from aging population

Blackstone Group LP and China’s Cindat Capital Management Ltd. are among bidders for a 50 percent stake in LendLease Group’s Australia senior housing business, which could fetch about A$1 billion ($757 million), people with knowledge of the matter said.

Singapore sovereign wealth fund GIC Pte also submitted an indicative offer by Tuesday’s deadline, said the people, who asked not to be identified because the information is private. Sydney-based LendLease, which has a $7.2 billion market value, aims to shortlist bidders in about a month, the people said.

Asian investors have been seeking exposure to retirement properties to take advantage of demand from aging populations around the world. The number of Australians aged 65 or above is expected to more than double to 8.7 million in 2056, from 3.7 million in 2016, according to data from Australian Institute of Health and Welfare.

Cindat led a consortium that bought a controlling stake in a group of elderly homes and long-term care facilities in the U.S. from real estate investment trust Welltower Inc. for $930 million last year. A representative for Cindat said Tuesday the company aims to diversify its senior-housing portfolio with investments in Australia, Europe and the U.S., while declining to comment on any bid for LendLease.

A spokeswoman for LendLease said the company is looking at the opportunity to introduce capital partners to drive continued growth of the business, declining to comment further. An external spokesman for Blackstone in Australia declined to comment in a text message, while a representative for GIC didn’t immediately respond to a request for comment.

LendLease plans to form a joint venture with the winning bidder when the sale is completed, the people said. The company owned more than 12,400 senior-living units in 71 retirement villages across Australia at the end of 2016, according to its half-year report.

Blackstone agreed last year to buy five retirement villages in New Zealand from LendLease for an undisclosed amount. GIC said in March it teamed up with Canada Pension Plan Investment Board and the Scion Group to acquire three U.S. student housing portfolios for about $1.6 billion.

— With assistance by Joyce Koh

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