EQT last week announced its agreement to acquire Australian retirement village provider, Stockland Retirement Living, from Stockland property development group for a consideration of A$987 million ($716.7 million).
The acquisition will be made by the private equity firm’s €15.7 billion fund, EQT Infrastructure V.
The fund, which after the acquisition will be 70-75% deployed, is dedicated to five core sectors, namely, energy, transport & logistics, environmental, digital, and social infrastructure.
The fund’s portfolio includes radiation and oncology clinic provider Icon Group, which it acquired in November 2021, in what was the firm’s first infrastructure deal in Australia, and the firm's third deal in the market overall.
The first deal in the market comprised EQT’s acquisition of radiology provider I-Med, which the company went on to exit in 2018, and the second, IT services business Nexon, which they acquired in 2019.
A spokesperson for EQT declined to comment on the firm’s exit strategy for the investments nor the current size of the team in Australia.
In November, EQT’s head of Asia Pacific infrastructure and head of Australia and New Zealand, Ken Wong, told FinanceAsia that the firm had a team of 18 in Australia, including one fundraising professional, and shared EQT’s plans to double down on healthcare investments this year.
The latest acquisition is in line with EQT’s focus on investments that address macro themes such as aging populations. It is also guided by the trends of automation, big data, digitalisation, e-commerce, sustainability, urbanisation and connectivity.
EQT’s previous investments in the elderly care space include its 2020 acquisition of New Zealand-based Metlifecare - which recently completed the largest-ever sustainable refinancing for the market - and a minority stake acquisition in Australian elderly care-focussed IT service provider, Five Good Friends, in 2021.
“Stockland Retirement Living is a clear leader in the Australian retirement living space and we are excited about partnering with the company and supporting its ability to continue to develop and operate high-quality retirement villages,” said Wong, in the announcement.
“With an aging Australian population and increased focus on enabling elderly Australians to age in place, we are excited to have the opportunity to use our significant global experience in elderly care to enhance the range of services provided to current and future residents of Stockland’s villages,” he added.
Stockland Retirement Living will continue to grow its footprint under EQT, the announcement said. The firm plans to increase and improve its service offering through investment in technology and digital initiatives.
Goldman Sachs and King & Wood Mallesons advised EQT Infrastructure on the transaction.
