Aveo and Opal are not the only sale processes ramping up in the retirement and aged care sector, with sources suggesting at least one buyer is circling Metlifecare.
Private equity firm EQT owns the business and has hired Macquarie Capital to find a buyer for at least a 25 per cent stake.
The New Zealand retirement villages operator was listed in Australia and New Zealand before it was purchased by EQT in 2020 for $1.3bn.
It owns and operates 37 retirement villages in high socio-economic areas in New Zealand.
Macquarie has spent some time approaching parties to determine the level of interest.
Sources believe EQT has been keen to offload Metlifecare for some time, but the New Zealand economy has been challenging with high inflation and interest rates and a recession last year.
Some were pointing to Canadian pension funds as the most likely buyers, while Stonepeak, which recently bought Metlifecare rival Arvida for $1.2bn, and Pacific Equity Partners, which is looking at Aveo and is in exclusive talks to buy half of Opal, are not thought to be suitors.
In Australia, EQT owns the former retirement village business of Stockland, paying $1bn for the operation in 2022 and renaming it Levande.
Moves by Macquarie Capital to test interest in Metlifecare come after its investment bankers tried to find a buyer for Bupa’s aged-care operations in Australia and New Zealand.
It also comes as investment banks Morgan Stanley and Barrenjoey are selling retirement operator Aveo for Brookfield.
The Canadian private equity firm is believed to be seeking about $3bn.
The other deal in the sector involves Lendlease selling its 25 per cent stake in Keyton, with other shareholders Aware Super and APG the most likely buyers, but at a discounted price.
Some analysts believe the retirement village industry could be poised for upside, as the supply of housing remains tight in both Australia and New Zealand, prompting some who may not have considered moving into a retirement village to reconsider.
Interest rate cuts may also stimulate the market.
Also helping Australian providers is the move to combine more aged-care services on site.
However, others still think the market is tough for retirement village operators.
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