One of Australia’s biggest superannuation funds Aware Super has bought a 25 per cent stake in Lendlease’s retirement living portfolio.

Lendlease has more than 75 retirement villages in its portfolio with 16,000 residents across Australia. The Aware Super stake in the business will mean the superannuation fund will take ownership of the retirement village portfolio, as well as development capabilities and associated pipeline.

Aware Super chief investment officer Damian Graham said it was a prudent investment in a growing property sector.

“Following the impacts of bushfires, drought and Covid-19, we have seen a strong uplift in Australians considering the safety, security and affordability of retirement living,” Graham said.

“This investment aligns with our overall property strategy which has an increased focus on the residential - including affordable housing, multi-family and retirement living – and industrial sectors.

“Investments such as this support Aware Super to do well for our members in terms of strong, sustainable, long-term returns while doing good in the communities where they live, work and retire.”

Lendlease will retain a 50 per cent interest in the Retirement Living business, and continue to manage the network of retirement villages.

“We will continue to provide quality services and support to over 16,000 residents in our retirement villages across the country,” Lendlease Property chief executive Kylie Rampa said.

“As a leader in the retirement sector, we’re committed to maintaining our focus on supporting the needs of Australia’s ageing population.”

Aware Super’s most recent investment comes off the back of a major essential worker affordable housing investment in West Sydney’s Liverpool in partnership with Altis Property Partners.

The Liverpool site will be developed into 300 affordable housing units and 8750sq m of office and retail space near to Liverpool Hospital and other major employers. Aware Super’s Damian Graham said the affordable units would be targeted at essential workers including teachers, nurses, aged care and disability support workers, police, emergency services workers and child care employees.

“This is a flexible and versatile investment in an area of high growth,” Graham said.

“Liverpool has a significant concentration of health and education infrastructure and a growing community of essential workers in these sectors.

“Through investments like this, we have delivered top-10 returns to our members, while responding to the housing affordability challenges so many essential workers face.”

Construction was expected to start mid-2022.