Lend Lease has confirmed it intends to sell its aged care business for $270 million to Australian Aged Care Partners, which is controlled by funds managed by Archer Capital.
Archer Capital Partner executive Ben Frewin said it had been evaluating investment opportunities in the aged care sector over the past three years.
Lend Lease will receive cash proceeds of $200 million plus a $70 million promissory note by the end of March this year.
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Lend Lease’s aged care business owns and manages 30 aged care facilities with 2,338 beds under management across New South Wales, Victoria, Queensland and South Australia.
There is also a development pipeline of 563 additional beds.
The business was acquired in the Primelife acquisition in 2009.
The Lend Lease chief executive officer Steve McCann said the aged care business was more closely aligned to healthcare services than property and was considered non-core for Lend Lease.
Australian Aged Care Partners will retain the current management team and all employees at each of the facilities.
David Armstrong will be appointed to the position of chief executive officer. He is formerly the managing director and a founder of DCA Aged Care.
Suzanne Petterson, general manager of Lend Lease Aged Care’s operations, will be appointed to the position of chief operating officer.
This article first appeared on Property Observer.