Michael Eggington’s growth aspirations for Lend Lease retirement villages have always been limited by the competitive access to funds within the corporation. Projects that can earn more money faster in residential development or infrastructure have won support ahead of retirement villages.

Now Lend Lease has taken a strategy turn and is seeking co-investors or ‘capital partners’ to contribute to acquisition funding or retirement villages. This will appeal to institutional investors seeking the security of property and the steady income of a mature retiorement village portfolio, coupled with some operational income upside.

Lend Lease values its retirement village portfolio at a 13.3% discount compared to Stockland and Aveo at 12.5%, a significant difference and upside, plus they forecast average value growth at 3.7%, a solid base to offer investors.

Stockland has adopted a similar philosophy but to sell up to 50% of its existing retirement village portfolio over the next six months to institutional investors. Lend Lease has indicated a ‘medium’ time frame to engage with capital partners..