Mirvac buys Serenitas in $1bn deal

Mirvac Group has agreed to purchase land lease operator Serenitas in a $1 billion deal with Pacific Equity Partners.

The ASX-listed property developer today announced a binding agreement to acquire Serenitas for $1.01 billion in a joint venture with Pacific Equity Partners, where each party has a 47.5 per cent stake.

The remaining interest will be held by Tasman, an existing owner of Serenitas, as Singaporean fund GIC exits the portfolio.  

Serenitas chief executive Rob Nichols will continue to manage the company's 27 communities across Australia, including 10 in Western Australia.

Its land lease model allows residents to own a home but rent the land, and is popular in retirement communities.

Mirvac Group chief executive and managing director Campbell Hanan said the acquisition expanded Mirvac’s residential offering and would position it as one of the largest land lease operators in the country.

“There is certainly a growing awareness of modern land lease communities across Australia and the benefits available to customers, which will no doubt drive future demand," he said.

Mirvac will make a $300 million initial investment, with about $240 million on settlement, which is expected in the third quarter of next year. 

It will defer a further $60 million for 12 months. 

Mirvac Group’s share price was up 0.48 per cent to $2.08 at the time of writing.