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Highlights

  • Infratil and NZ Super to sell RetireAustralia to Invesco Real Estate for AUD 845 million.

  • Infratil expects approximately AUD 300 million in proceeds upon completion.

  • Transaction expected to complete in the final quarter of 2025, subject to conditions including FIRB approval.

Infratil Limited (ASX:IFT) and the New Zealand Superannuation Fund (NZ Super) have entered into a binding agreement to divest their 100% interest in RetireAustralia to Invesco Real Estate, the global real estate investment business of Invesco Ltd., for a total consideration of AUD 845 million. The two sellers each hold a 50% stake in RetireAustralia, with both interests managed by global infrastructure investment manager Morrison.

The transaction remains subject to a limited number of conditions, including approval from Australia’s Foreign Investment Review Board (FIRB). Completion is targeted for the final quarter of the 2025 calendar year.

Upon completion, Infratil anticipates receiving proceeds of approximately AUD 300 million (NZD 328 million). The final figure will be subject to adjustments for transaction costs and completion requirements.

Infratil Chief Executive Jason Boyes stated that RetireAustralia is well positioned for future growth under Invesco’s ownership. He noted that since Infratil’s initial investment in 2014, the business has undergone considerable transformation, including leadership changes, a refreshed corporate strategy, and an expanded development pipeline. Boyes acknowledged the challenges faced by the sector over the same period, which limited the company’s ability to fully realise its ambitions for RetireAustralia. He also commended Chief Executive Dr Brett Robinson and the management team for their contributions to Australia’s retirement living sector.

As of 31 March 2025, Infratil’s investment in RetireAustralia was carried at NZD 404 million. The sale is expected to result in an accounting loss on disposal of approximately NZD 80 million. However, when considering capital contributions and distributions received, the proceeds are forecast to preserve almost all contributed capital, delivering an internal rate of return (IRR) close to zero over the nearly 11-year holding period.

The decision to sell aligns with Infratil’s previously outlined strategy to divest assets that are unlikely to scale under its ownership, thereby increasing balance sheet flexibility for reinvestment. The company continues to work toward its AUD 1 billion divestment target.

When Infratil first invested AUD 215 million in RetireAustralia in December 2014, the company’s market capitalisation was NZD 1.6 billion. Now exceeding NZD 11 billion, the size of the business makes it increasingly challenging for smaller investments to generate meaningful returns for shareholders.

The transaction will also result in a forecast negative realised incentive fee of approximately NZD 21 million in relation to RetireAustralia as at 31 March 2026. This is expected to be offset against other incentive fees at that time.

Following the announcement, Infratil’s share price rose 0.36% to AUD 11.09 on 8 August 2025.