Lendlease intends to sell up to half of the retirement village business, which is said to be worth A$2 billion. Likely bidders are Singapore’s GIC and New Zealand’s infrastructure group HRL Morrison, according to The Australian Business Review. “We are looking to bring in co-investors and actively continue to grow the business,” says Lombardo. This will allow Lendlease to reinvest in new villages as well as refurbish and update the care facilities in the existing villages, he adds.
Besides looking to maintain its pole position in Australia, Lendlease has also set its sights farther afield. It is looking to expand the senior living village business to Shanghai, given China’s huge population base, says Lombardo. “When you look at China’s demographics, there will be more than 400 million people over the age of 65 by 2050, and they will require retirement villages to move into.” As such, Lendlease intends to be a first mover in the market.
Elsewhere in Asia, Lendlease sees Iskandar Malaysia as another ideal place for the development of retirement villages, owing to its lower land cost and operating costs, adds Lombardo. In addition, Iskandar Malaysia’s proximity to Singapore will be a plus for ageing Singapore citizens looking for affordable retirement villages, he says.