New Zealand's state-run pension fund and utilities investor Infratil Ltd will acquire Australian retirement village operator RetireAustralia in a deal worth A$640.2 million ($519.91 million) as they gain exposure to Australia's growing retirement services sector.
The two parties will each take a 50 percent stake in RetireAustralia, currently owned by Morgan Stanley Real Estate Investing and the J.P. Morgan Global Special Opportunities Group, the Superannuation fund and Infratil said in a statement dated Dec. 24.
They will fund the acquisition through cash equity of A$214.8 million each, while the balance will be funded by existing bank debt on RetireAustralia's balance sheet.
"RetireAustralia provides a strong platform in an Australian sector that offers very attractive long-term growth prospects," Infratil CEO Marko Bogoievski said in a statement. RetireAustralia operates 28 retirement village across Australia.
The Superannuation fund and Infratil said they expected to settle the deal on Dec. 31.