Swedish private equity firm EQT AB (publ) (OM:EQT) could be the next to place its $1 billion Australian retirement villages business on the market, with sources suggesting the firm has been testing market interest. EQT executives have been querying experts and potential buyers about the value of Levande (Levande Pty Ltd), Australia's third-largest retirement village operator behind Aveo and Retirement Villages Group. Market sources are reading this as a signal the "for sale" sign could go up in just months.
The move would be logical given the eye watering $3.85 billion price achieved by Brookfield for Aveo, which was sold to The Living Company (formerly Scape) last year. RetireAustralia's owners chose to capitalise on the momentum and it was offloaded soon after to Invesco for $845 million. Levande consists of the retirement living business purchased from Stockland by EQT in 2022 for close to $1 billion, making it one of the country's largest operators.
EQT bought up big around the time in Australia and New Zealand retirement assets, and while demand is strong in Australia, selling its New Zealand operator Metlifecare that it purchased in 2020 for $1.3 billion may not be so easy. Various efforts have been made to sell parts or all of it in the past and peers trade below their current book values. It is now slated for a listing through Jarden, Macquarie Capital and potentially Forsyth Barr or Barrenjoey.
