Lincoln Place pivots from $1bn sale to recapitalisation after buyers baulk

Lincoln Place owns, develops and operates lifestyle estates, designed specifically for the over-50s market.

Speculation is mounting that the owners of land lease operator Lincoln Place will likely step back from plans to sell the business and opt for a recapitalisation after testing market interest.

DataRoom understands that the owners of the business, alongside their adviser Goldman Sachs, reached out to major listed groups including Mirvac, Stockland, Ingenia and GemLife.

Such parties have declined to participate, with sources suggesting the assets did not align with their portfolio investment criteria.

The other option is an initial public offering, but unlike the recent listing of landlease operator GemLife, which was a founder selling and retaining a holding in the business, this is a private equity firm making a divestment.

Cerberus Capital owns part of Lincoln Place and the move to test buyer interest came through its desire to exit the investment.

However, equity investors are cautious about IPOs involving private equity selldowns, based on past experiences, making a float that much more harder to win over the market.

DataRoom reported in October that investment bank Goldman Sachs had started scheduling meetings with potential buyers of Lincoln Place before a sale process was officially to start next year.

The price tag was said to be $1bn for the company that leases land to residents who own the modular homes on the sites.

The owners of the developer and operator of lifestyle estates, designed specifically for the over-50s market, include its founders, former Mirvac Group boss Nick Collishaw and former Mirvac executive Ben Hindmarsh.

It owns 24 communities in NSW, the ACT, Queensland and Victoria. Its greatest presence is in NSW, where 13 communities are located.

The business was founded in 2018, and currently, Cerberus owns the majority of the land holdings side of the business while the founders hold the minority.

With respect to the operating company selling the homes, Cerberus is the minority shareholder.

Superannuation funds and sovereign wealth funds may now recapitalise the business and become part owners, replacing Cerberus.

Among the groups that have been active in the retirement living sector are AustralianSuper, Australian Retirement Trust, GIC and Aware Super.

Strategic groups and private equity firms that already own assets in the sector are usually more nimble when it comes to deals.

They include EQT, which owns retirement-living business Levande, student accommodation provider Scape which has purchased Aveo, and Mirvac Group and Pacific Equity Partners, which both own land-lease operator Serenitas.