Ord Minnett and Morgans have been tapped by Gemlife as retail lead managers for its initial public offering that could see it hit the ASX with a $2bn market value.
Already on the ticket are JPMorgan, Morgan Stanley and Highbury Partnership.
Site visits for investors were held this week ahead of a non-deal roadshow, otherwise known as investor education meetings, in Asia next week.
The understanding is that retail investors will be a major focus for any listing, given that many would be familiar with the asset class.
The business is owned by the Puljich family and sells manufactured homes to the 50-plus section of the market on Australia’s east coast.
It was previously on the market for $2bn and may sell down several hundred million dollars, depending on market demand.
Further details on the pricing of the business are expected to be known in the next week.
The play would be for investors keen to gain exposure to a growth stock, rather than one generating a high yield.
The land lease market is in demand from investors, as evidenced by listed rivals, Ingenia and Lifestyle Communities, which are both trading at over 17 times their net profit.
Investors are likely betting on stronger demand for property with falling interest rates and a housing shortage.
It comes as Brookfield is in exclusive talks to sell its retirement living business Aveo to Scape for over $3bn, while Lendlease has renewed interest in its stake in Keyton Retirement Living, which it previously owned outright and is said to have a similar asking price.
In 2022, when GemLife was for sale, Aware Super and APG were among the groups taking a look at the asset.
It describes itself as one of the fastest growing over-50s lifestyle resort operators, with 12 communities across Queensland, northern New South Wales and Victoria.
The company is headed by director and chief executive Adrian Puljich.
Elsewhere, Goldman Sachs assisted ESR selling 10.8 per cent of its stake in Cromwell Property Group on Wednesday night at 33c a share.
“As part of ESR’s stated strategy of non-core divestments to simplify its business, ESR has sold a 10.8 per cent stake in Cromwell,” Phil Pearce, deputy chief executive of ESG Group and chief executive of ESR Australia and New Zealand said in a statement.
Post transaction, ESR will remain Cromwell’s largest security holder and retains a 19.9 per cent stake.
Shares on Thursday were down 7.9 per cent to 35c after closing on Wednesday at 38c.
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