Lendlease Corp. Ltd. is teaming up with nonprofit aged care home operator Catholic Healthcare as it ventures back into Australia's growing retirement housing industry, The Australian reported, citing industry sources.
According to the June 8 report, the property developer secured 756 out of the 9,911 residential places approved by the Australian government for aged-care villages, with development plans for six sites across the Australian Capital Territory, New South Wales, Queensland and Victoria.
A company spokeswoman told the publication that the company's focus will remain on the development of retirement accommodation, adding that obtaining bed licenses is in line with the care model already provided in its aged-care villages. The paper also noted that Lendlease will likely develop its retirement villages near its existing sites.
Lendlease's perceived comeback to the industry follows a recent news that bidding for a 50% stake in its A$1 billion retirement living portfolio has intensified as global property giants, such as Blackstone Group LP's GIC, Canada Pension Plan Investment Board and Cindat Capital Management compete for the assets.
Meanwhile, CoreLogic Head of Commercial Research Eliza Owen wrote in a separate article in The Australian that up to A$33 billion in investments will be needed in the retirement housing industry in the next 10 years in the country, accounting for about 76,000 new places, according to estimates made by Aged Care Financing Authority.
As of June 7, US$1 was equivalent to A$1.32.