Australia’s leading owner, operator and manager of retirement communities, Aveo Group Limited
(ASX:AOG) is pleased to announce that it has acquired the interests of a further 11 investors in the Retirement Villages Group fund (RVG), giving Aveo a 73% interest in RVG. The last of the settlements to give effect to these holdings will occur on 29 April 2016. Only one other investor remains in RVG, holding the balance of 27%.
The acquisitions, which in total comprise 31% of RVG, follow the acquisitions in 2015 of the interests of three other investors, which totalled 19%. This was part of Aveo’s broader strategy of acquiring all outstanding fractional interests across its entire retirement portfolio where it is EPS accretive.
The 31% interest in RVG was progressively acquired in March and April 2016 for a total consideration of $101 million at a cost of 22 cents per security, which represents a 21% discount to RVG’s current security value (“CSV”). Aveo will continue to account for its 73% investment in RVG using the equity method, and therefore, the total carrying value will be $262 million and equates to a 13% discount to the reported CSV of the fund.
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