
Real estate investor and fund manager, Cromwell Property Group, has exchanged on the sale of its 50% interest in LDK Healthcare (LDK) to Anglican Community Services, trading as Anglicare Sydney.
Cromwell currently provides funding to LDK through a combination of its equity contribution to LDK and $148 million (as at 30 June 2022) in secured interest-bearing loans, due to be repaid by June 2028.
The sale of Cromwellâs interest is structured in two parts: initially, Cromwell will receive a payment of $20 million for its 50% equity interest in LDK. The secured interest-bearing loans will remain in place until the end of February 2023, with an option for LDK to extend repayment until the end of June 2023. The sale proceeds represent a 67% premium to the book value of Cromwellâs equity interest in LDK and, on repayment of Cromwellâs loans to LDK, releases total capital of c. $168 million.
Settlement of the sale is anticipated to be on Monday 10 October 2022. The proceeds from the sale and repayment of loans will be used initially to reduce Cromwellâs gearing. The sale is consistent with commitments to simplify Cromwellâs structure by selling non-core assets and positioning the company as a capital-light global real estate fund manager.
Cromwell is pleased to be transferring its interest in the LDK joint venture to Anglicare, a trusted aged care and retirement living operator, which will continue to ensure residentsâ needs remain at the forefront of all decisions.
Cromwellâs Chief Investment Officer Rob Percy said: âThrough the LDK joint venture, we have created significant value by repositioning a vacant, campus-style office complex comprising five freestanding buildings into a world-class seniorsâ living village with over 380 purpose-built apartments. Now is the right time for Anglicare â a natural joint venture partner for Aspire Aged Care â to enter into the LDK joint venture ahead of future developments.â
âAnglicare is committed to LDK continuing to provide the highest level of service and care to the residents of Greenway Views and The Landings and Anglicareâs interests align well with Aspire as a joint venture partner in this next stage of LDKâs growth.â
Anglicare CEO Simon Miller said: âFor more than 160 years, including 70 in aged care and retirement living, Anglicare has sought to provide excellent service, with a focus on ensuring that all are cared for with dignity and respect. This opportunity to join in a partnership with Aspire is a good fit for Anglicare. LDKâs values are highly complementary to Anglicareâs and we look forward to partnering with them to deliver exceptional service for LDKâs current and future residents.â
Also commenting on the sale, Aspire Managing Director and LDK Founder Paul Browne said: âWe are proud of what we have accomplished with Cromwell over the past four years and look forward to continuing to deliver villages where our LDK residents feel a true sense of belonging in this new chapter with Anglicare.â
Cromwellâs joint venture with Aspire Aged Care to form LDK began in 2018 with the adaptive reuse of the Cromwell-owned suite of office buildings in Tuggeranong, ACT, redeveloping the site into a worldclass seniorsâ living village, Greenway Views.
The acquisition by LDK of The Landings at Turramurra, one of Sydneyâs premier seniorsâ living villages, followed shortly after in early 2019.
The Greenway Views project garnered significant support from the Clean Energy Finance Corporation (CEFC), which provided $60 million in finance to improve the sustainability outcomes at the seniorsâ living village, its first investment in a seniorsâ living project.
The adaptive use of the existing Tuggeranong building resulted in a saving of around 30,740 tonnes of carbon, representing a 20% reduction in upfront embodied carbon.
Greenway Views has since won multiple awards for sustainability, including being awarded top prize at the 2021 Property Council of Australia / Rider Levett Bucknall â Innovation and Excellence Awards â Best Sustainable Development â Existing Buildings.