Suitors line up to secure slice of retirement living operator Keyton

Lendlease’s clubhouse at The Gardens on Lindfield retirement residential lifestyle community at Helensvale.

Global asset management firm Barings is understood to be among the suitors weighing a purchase of the $3bn Lendlease-backed retirement operator Keyton.

DataRoom understands that indicative offers for Keyton are due next week in a Gresham-run sale that could result in the entire company being offloaded, if not a stake at the very least.

Other parties assessing a deal are believed to include AustralianSuper, while Singapore’s GIC could be showing interest.

It comes after the $3.8bn Lendlease is believed to have received at least one inbound approach after Keyton has been unofficially for sale for months as Lendlease looks to reduce debt.

Scape’s recent agreement to enter exclusive talks to buy Brookfield’s retirement living business Aveo for more than $3bn may have added some momentum.

Keyton is rejuvenating the sector with over-55s living communities that focus on wellness, embracing physical and mental health.

Keyton is owned by Aware Super, APG and Lendlease, which has a 25 per cent holding after selling down the business.

It has 75 villages across Australia with 17,000 residents and more than 900 staff and is run by Nathan Cockerill.

Barings has close ties with Aware Super.

Barings owns the Altis Property Partners business that manages Aware Super’s Oak Tree retirement villages business and one theory is that it could be fronting as the bidder for Aware Super.

EQT has been a major investor in retirement living assets, buying Metlifecare in New Zealand for $1.3bn in 2020 before acquiring Stockland’s retirement living business in 2022 for $1bn.

Aveo has 4 per cent market share of the Australian retirement living market, ahead of Keyton with 1.9 per cent and Bolton Clarke with 1 per cent, according to IBISWorld.

Pension funds and infrastructure investors searching for stable earnings streams have shown interest in retirement assets over recent years.

EQT last year tested interest for a sale of Metlifecare through Macquarie Capital.