Blackstone, Navis Sell Aussie Residential Assets to GIC JV

Singapore’s $359 billion sovereign wealth fund GIC is building on a string of residential investments globally by joining with a local partner to acquire a set of gated communities in Western Australia from Blackstone and its Malaysia-based partner Navis Capital Parterns.

Under the terms of the agreement between the fund managers, Serenitas, a joint venture formed last year between GIC and local partner Tasman Capital Partners, will acquire eight completed housing communities developed by National Lifestyle Villages, along with two pipeline projects, from Blackstone and Navis.

The deal is the third transaction this month between GIC and Blackstone, including trades of assets in New Zealand and the United States.

Senior Community Deal Said Priced Below $204M

While financial terms of the transaction were not disclosed, an account in The Australian Financial Review indicated that the agreed acquisition price was lower than the tentative price tag of A$275 million ($204 million) for National Lifestyle Villages one year ago, when ASX-listed Gateway Lifestyle Group was said to be in talks for the company – reports that Gateway denied.

Malaysian private equity group Navis and US-based PE giant Blackstone teamed up to invest A$150 million in National Lifestyle Villages in November 2014. Under the terms of the deal announced this week, Navis will exit its investment in the Perth-based firm, and Blackstone is also exiting after holding part of National Lifestyle’s debt, according to multiple media reports.

National Lifestyle Villages operates “lifestyle communities,” providing residents 45 years and older with low-cost home ownership, resort-style facilities and a community experience.

The company opened its first village in 2001 at Lake Joondalup in Perth and has since added seven completed villages with two more under development.

GIC and Blackstone Getting Better Acquainted

GIC’s purchase of the portfolio of senior villages comes during the same month that the Singaporean sovereign wealth fund, together with Goodman Property Trust (GMT), sold a commercial office project in Auckland, New Zealand to Blackstone for NZ$635 million ($438 million).

Also during May, a spokesman for the La Quinta Resort and Club in Palm Springs, California is said to have confirmed that Blackstone bought the exclusive golf destination and home of the PGA West tournament from GIC.

The California deal is part of a set of assets that Blackstone purchased from GIC, including its $1.1 billion acquisition of the Grand Wailea resort in Maui during January, and a $403.4 million acquisition of the Arizona Biltmore resort in Phoenix which was revealed last month.

New Investors Ready to Inject Fresh Capital

Serenitas will invest “significant capital” to complete the development of National Lifestyle’s villages, according to the statement, and the company will be seeking further opportunities for growth in the sector.

“Serenitas is very much looking forward to bringing our wealth of experience in the sector to benefit NLV’s ‘Lifestylers’,” commented Nichols in the statement. “NLV has built a portfolio of villages with a safe, welcoming environment and modern facilities, and Serenitas looks forward to building on that foundation.”

GIC Ramps up Residential Exposure

GIC’s bet on Aussie lifestyle villages comes less than two months after the sovereign investor committed $1.3 billion to Vietnamese residential builder Vinhomes. With an estimated $359 billion of global assets under management, GIC has notched billions of dollars in residential deals in recent years, including more than $3.2 billion in student residence investments.

In January, the company partnered with Canada’s CPPIB to plough $1.1 billion into university communities across the US with Chicago-based Scion Group. And the following month, GIC revealed a $300 million joint venture with CCLA, which develops, owns and operates rental residential assets in Mexico and Latin America.