Investment bank Macquarie Capital is understood to be searching for buyers of private equity firm EQT’s New Zealand retirement village operator Metlifecare.
The business, which was previously listed in Australia and New Zealand, was purchased by EQT in 2020 for $1.3bn.
It owns and operates 37 retirement villages in high socio-economic areas in New Zealand.
The understanding is that the business is not officially for sale yet, but Macquarie has been approaching parties to determine whether they’re interested.
One source says EQT is looking to sell just a 25 per cent stake.
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 in 2023.
However, the New Zealand reserve bank cut rates last week, while Stonepeak, advised by Goldman Sachs, last month agreed to buy Metlifecare rival Arvida for $1.2bn – though the price was similar to what Stonepeak had offered earlier when a deal was rejected by the company.
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 prepare to sell retirement operator Aveo for Brookfield.
The Canadian private equity firm is believed to be seeking about $3bn.
RetireAustralia is not yet officially for sale but Jefferies is sounding out interest.
Last year, Keyton, owned by Aware Super, APG and Lendlease, offered about $700m for the business, but price expectations are understood to be higher.
Lendlease is 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 market analysts believe that 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 retirement village accommodation 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, and buyers are thin on the ground.
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