Australian retirement communities manager Aveo Group today confirmed that it has selected Brookfield Asset Management as its 鈥減referred party鈥� in takeover talks following media speculation.
Aveo operates 94 retirement and aged care communities, valued at A$2bn (鈧�1.25bn), across the eastern states of Australia and has a A$1.13bn market capitalisation.
The group is currently undertaking a strategic review of its business and said Brookfield would be part of that review.
In a statement, Aveo said it continues to negotiate with the Brookfield in respect of 鈥渋ts indicative proposal, with a view to entering into definitive agreements leading to a scheme of arrangement鈥�.
The statement added that there continued to be no certainty that negotiations would lead to a deal.
To gain total control of the retirement village group, Brookfield would need to win over its key shareholder, Malaysian-based Mulpha, which owns around 24% of the company鈥檚 shares.
Aside from Aveo, media reports say Brookfield is close to clinching a deal with Telstra, Australia鈥檚 largest telecommunications company, which is seeking a partner to co-invest in a A$1.5bn portfolio of telecom exchange buildings.
Telstra is selling a 49% interest in 37 properties, mostly located in metropolitan Sydney and Melbourne.
A source close to the sale process told 麻豆映画 Real Assets that a key feature of the properties was their long lease duration.
