2 JULY 2007 AEVUM ACQUIRES ANOTHER SYDNEY RETIREMENT VILLAGE – DEVELOPMENT UPDATE Aevum Limited (ASX Code: AVE) has exchanged contracts to acquire the Maybrook Manor Retirement Village (“Maybrook”) located in Cromer, Sydney for $11.6 million plus adjustments for stock and working capital. A further deferred component of $2.4 million is payable should DA’s be obtained within a year for the development of a further 19 units on vacant land included with the acquisition. Maybrook is a mature village consisting of 98 Independent Living Units. Developed in three stages over the past 10 years, the village consists of a mixture of one, two and three bedroom units at various price points, large communal facilities, a restaurant, indoor pool and under cover car parking. The village is conveniently located in the midst of the Northern Beaches and offers a bushland setting only minutes away from Dee Why and Warringah Mall. The typical contract structure entitles the operator to a deferred management fee calculated on the entry price of the Independent Living Unit plus a share of the capital gain upon departure. The acquisition will be funded through existing cash reserves and committed debt facilities and is immediately earnings accretive. Maybrook was an off-market transaction negotiated directly with the vendor and continues Aevum’s strategy of focussing on single village acquisitions which deliver strong recurring earnings. It also further strengthens Aevum’s dominance as the largest “pure” retirement living investment vehicle listed on the ASX. Following recent acquisitions, including Camden View Village and The Willows, Aevum now owns and operates 18 villages comprising 1,876 ILU’s and Serviced Apartments and 202 Aged Care beds. Aevum also has development consent for expansion and redevelopment of 169 ILU’s at existing villages and an identified development pipeline of a further 257 ILU’s. Aevum chief executive officer, Mr Simon Owen, said the acquisition of “Maybrook” represented a well priced opportunity for Aevum to further strengthen its leading position in the NSW market and obtain another quality facility within the Sydney Metropolitan area. “Maybrook is located on Sydney’s northern beaches approximately 25 minutes from the Sydney CBD and less than 10 minutes from Manly,” Mr Owen said. Aevum Limited L6, 23-25 O’Connell Street SYDNEY NSW 2000 T: 02 8223 0900 F: 02 9222 9717 2 “This is a mature village with more than 100 residents and is located in an attractive retiree location close to major shopping centres, health facilities, public transport and recreational facilities. “There is also the potential for the development of another 19 high quality ILU’s to supplement the existing earnings base”. Mr Owen added that Maybrook also was positioned conveniently to Aevum’s Lourdes retirement village in Killara which presented opportunities in the future for sharing of services and management and Maybrook residents accessing the company’s continuum of care model.
AVE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
