Mitsubishi Estate Asia sells 49.9% stake in Australian land lease portfolio for A$400 mil
The circa 5% yield signals growing superannuation demand for income-producing living assets, which could support institutional investment and liquidity in Australia’s senior housing segment.
Mitsubishi Estate Asia sold its 49.9% stake in a six-community, 2,025-home Australian land lease portfolio to a Mercer-managed pension fund for over A$400 million.
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Mitsubishi Estate Asia (MEA) has sold its stake in a portfolio of Australian senior living communities to a pension fund managed by New York-headquartered Mercer Investments. The deal is valued at over A$400 million (about $361 million).
MEA had put up its 49.9% stake in Stockland Residential Rental Partnership (SRRP), a joint venture with Australian developer Stockland, for sale in February. SRRP has a portfolio of six operational land lease communities comprising 2,025 homes across Queensland and Melbourne.
Mercer Investments (Australia) acquired the stake on behalf of an Australian superannuation fund. Stockland will retain its 50.1% interest in SRRP and continue to manage the partnership.
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The sale of MEA’s stake reflects a yield of circa 5%, said CBRE, which brokered the deal. “This transaction is a significant marker for Australia’s living sector, with this acquisition demonstrating how superannuation capital is increasingly targeting high-quality, income-producing living assets,” added Stuart McCann, CBRE’s managing director and head of capital advisors, Pacific and Southeast Asia.