Core-plus play

All of that should bode well against macro trends of a growing population, structural undersupply of housing, and the demand for downsizing among older Australians who have high levels of homeownership.

Jefferies added that the ASX had failed to fully value more passive retirement platforms, with several groups now headed towards being owned by core-plus infrastructure players. Examples include listed Lendlease’s planned exit of a 25 per cent stake in Keyton, and Brookfield’s Aveo which has just hired MA Financial and Colliers to sell 16 assets in South Australia and Tasmania.

RetireAustralia, with its 28 villages and 4135 units, is smaller than competitors including EQT Partners’ Levande (owner of more than 90 villages), Aveo (75) and Keyton (58), according to the preliminary sale documents.

Suitors have heard the pitch before, with all its bells and whistles about scale and demographic tailwinds. The big question is who would be prepared to lob a bid when Jefferies comes around to collect offers.

In 2022, when Jarden and E&P ran an auction, Brookfield and Blackstone took a good look but did not pull the trigger on a bid, as reported by this column. ASX-listed Australian Unity and Lendlease both tabled non-binding indicative bids.

NZ Super and dual-listed Infratil own the asset 50-50, with Morrison & Co managing the investment for both. They paid $614 million on their way in, in 2014.