Arvida's $345m purchase a sharp deal with development opportunities

Chief executive Jeremy Nicoll didn't want to leverage up. (Photo: supplied)

Tue, 19 Oct 2021

Arvida appears to have struck an extremely advantageous deal with America-based investment behemoth Blackstone in its $345 million purchase of six retirement villages.The Arena Living portfolio's price was a 12% discount to the June 30 valuation by CBRE of $394m.Arvida's own assessment is that based on potential future cash flows from resale gains and the deferred management fees, is that Arena's embedded value is $385m, taking its total portfolio's embedded value to $867m.The purchase will also immediately add to earnings, lift...

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