PEP participates in $634m Australia land lease operator deal
Pacific Equity Partners (PEP) and property owner and manager Mirvac have agreed to acquire Serenitas, land lease operator Serenitas for an enterprise value of approximately AUD 1bn (USD 634m).
The GP is participating through its secure assets strategy, which pursues opportunities that generate infrastructure-like annuity income yet offer opportunities for private equity-style operational improvement. The second fund under this strategy closed on AUD 1.4bn in March. Recent activity includes purchasing a 50% stake in biogas-to-energy business LMS Energy.
Mirvac said in a filing that it would make an initial investment of AUD 300m, with AUD 240m funded on settlement – projected to happen in the first three months of 2024 – and AUD 60m 12 months later. Serenitas will be structured as a joint venture with Mirvac and PEP each owning 47.5% and the balance held by existing investor Tasman Capital Partners.
Serenitas was established by Tasman and Singapore’s GIC as an acquisition platform targeting the manufactured home estate or land lease communities market. The anchor asset is National Lifestyle Villages, which was purchased from Navis Capital Partners in 2018. Serenitas is the fourth-largest owner and operator in what is predominantly a retirement accommodation space.
The company’s portfolio comprises 27 communities with over 6,200 sites, of which 4,200 are occupied and 2,000 are awaiting development. The existing Serentias team of approximately 100, led by CEO Rob Nichols, will continue to manage the portfolio.
“Our expansion into the living sectors comes against a backdrop of critical housing undersupply, and tailwinds including rising population growth, record low rental vacancy levels and affordability challenges,” said Campbell Hanan, CEO and managing director of Mirvac.
"Our existing apartment and masterplanned communities product are beneficiaries of these fundamentals, and our build-to-rent portfolio and expansion into land lease are natural adjacencies to our residential capabilities.”
He added that Australia’s over-55s population – considered the prime target for land lease communities, yet penetration is just 2% – numbers 7.5m and is projected to almost double over the next 40 years.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.