Aware Super ups stake in retirement village asset

Aware Super has increased its ownership in Keyton, Australia's largest owner and operator of retirement villages, to 75% by acquiring Lendlease's interest of 25.1%.

Aware Super acquired its initial interest of 49.9% in Keyton in 2021 and 2022. Alongside Aware Super, APG will retain its existing 25% interest.

Keyton has 66 retirement villages and over 15,000 residents across Australia.

Aware Super head of property Alek Misev said: "Aware Super is pleased to increase our investment in Keyton Retirement Villages and deepen our commitment to the retirement living sector in Australia, delivering strong returns to our members."

Misev added increased ownership in Keyton aligns with the fund's property strategy through exposure to long-term senior living demand backed by an aging demographic and a structurally undersupplied sector.

"Keyton's management team has a proven track record of strong and consistent performance, benefiting from a geographically diverse portfolio, strong occupancy rates, and a robust development pipeline that positions it well for sustained growth," Misev said.

"Aware will continue to progress key strategic initiatives that support Keyton's long-term strategy, operational performance and the ongoing delivery of high-quality retirement living."

Completion of the transaction is subject to regulatory approvals with completion targeted for H1 FY27.

"Aware Super looks forward to continuing to work with APG to support Keyton's long-term success," Misev said.

The super fund recently sold the majority portion of its Australian water portfolio with the strategic divestment of 83 gigalitres of water entitlements from the southern Murray-Darling Basin.

The proceeds from the sale, which have remained undisclosed, of the water rights will be redeployed back into the fund's infrastructure portfolio for future investment opportunities.

Meantime, Aware Super has completed its major multi-year technology uplift, dubbed Project Odin.

Aware Super chief investment officer Simon Warner said the completion of Odin marks a critical milestone in the fund's evolution as a sophisticated global asset owner.