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Super fund buys stake in retirement village

A $135 billion industry superannuation fund is to acquire a stake in Lendlease's retirement villages business.

Aware Super will gain a 25% stake in Retirement Living, which comprises 75 retirement villages that are home to more than 16,000 residents nationwide.

Lendlease will hold a 50% interest with Dutch pension asset manager, APG Asset Management.

Aware will have ownership of the retirement village portfolio and its associated operating platform, while Retirement Living will continue to operate under the Lendlease brand.

Aware Super chief investment officer Damian Graham said: "Following the impacts of bushfires, drought and COVID-19, we have seen a strong uplift in Australians considering the safety, security and affordability of retirement living."

"This investment aligns with our overall property strategy which has an increased focus on the residential - including affordable housing, multi-family and retirement living - and industrial sectors."

Lendlease property chief executive Kylie Rampa commented that the transaction builds on the wider strategic partnership with Aware and strengthens the joint venture between Lendlease and APG.

Graham said recently that the super fund is focused on building its unlisted infrastructure portfolio.

"As a fund we feel we're in pretty good shape. We did a lot of work to figure out what risk exposures and liquidities were," he said.

"We really wanted to define as much as possible how much liquidity we had to be able to take advantage of opportunities."

The super fund is continuing to expands its affordable housing portfolio, constructing 300 housing units as well as 8750 square metres of office and retail space close to Liverpool Hospital.

Read more: LendleaseAware SuperAPG Asset ManagementDamian GrahamKylie Rampa
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