Australian property developer Lend Lease has sold its 30-facility aged care business to Australian Aged Care Partners, which is controlled by the Sydney-based private equity firm Archer Capital.
The transaction, valued at AU$270 million, is expected to be completed by the end of next month. Lend Lease will receive cash proceeds of AU$200 million and a promissory note of AU$70 million.
“The aged care business is more closely aligned to health- care services than property and is therefore considered non-core for Lend Lease,” Lend Lease Chief Executive and Managing Director Steve McCann said in a company statement.
“Lend Lease will use the sale proceeds to continue to deliver its core development pipeline in Australia.”
The acquisition is a first for Archer Capital.
“We have been evaluating investment opportunities in the aged care sector over the past three years,” Archer Capital partner Ben Frewin told the Wall Street Journal.
According to Mr Frewin, the equity firm is looking to invest further into Australia’s residential aged care opportunities.