Moving to Sydney
Property group branches into upscale retirement market
FKP Property Group has acquired an up-market Sydney retirement village portfolio from Cbus Property Group for about $220 million.
The portfolio comprises about 600 units — some to be completed before settlement on April 30 — in three villages on Sydney’s North Shore — two in Bayview and one in Lindfield.
The exact purchase price is yet to be determined, but it’s expected to be between $200 million and $220 million, after factoring in trading activity and inventory movements between now and settlement.
Brisbane-based company chief financial officer Darryl Guihot said FKP had being looking to purchase in Sydney, an area it felt was lacking in its portfolio.
‘‘We’re the largest retirement v i l l a g e o w n e r - operator in the country, and it’s particularly pleasing to now be in Sydney,’’ he said.
‘ ‘ W e w e r e u n d e r - represented there and now we’re pleased to have the opportunity to tackle that market.’’
The acquisition is expected to be completed towards the end of this fiscal year and will have a minimal impact on earnings in 2006/07.
It is expected to be earnings accretive after that.
Developer FKP owns 45 villages around Australia, except in WA, and a further 1 7 c o - m a n a g e d w i t h Macquarie Bank Ltd.
Collectively, FKP and Retirement Villages Group — a j o i n t v e n t u r e w i t h Macquarie Bank — have 2000 units in early development plans.
Last week, RVG purchased two villages in Mosman and one each in St Ives and Avalon.
Mr Guihot said FKP would continue to actively look to purchase more villages in Sydney and around the rest of Australia, with no specific projects planned.
FKP chief financial officer Darryl Guihot