Folkestone’s (ASX:FLK) real estate funds management subsidiary, Folkestone Real Estate Management Limited (FREML), announced that it had exchanged contracts for the acquisition of Watermark Castle Cove, an award winning retirement living community on Sydney’s lower north shore, the first asset for its seniors living platform and the Folkestone Seniors Living Fund No.1 (FSLF).
The acquisition of the Watermark Castle Cove retirement living community comprises a 100 per cent interest in 50 existing independent living apartments (ILAs) and 8 ILAs under construction which will be paid for on completion (including leasing1).
It also involves a 100 per cent interest in adjacent land for development of an additional 21 ILAs on terms whereby part of the consideration is contingent on completion and leasing1 of the ILAs and the development is undertaken in a 50/50 joint venture with the Watermark Partnership.
As a result of the acquisition, the FSLF will be entitled to the earnings generated by Watermark Castle Cove from the deferred management fees payable by residents on departure and re-leasing of the ILAs (inclusive of the 21 ILAs to be developed in joint venture with the Watermark Partnership) and 50 per cent of the profit from the development of the additional 21 ILAs.
“After a period of extensive research and analysis, we are pleased to have secured Watermark Castle Cove as our first asset and the Joint Venture with the Watermark Partnership for our seniors living platform,” according to Stuart Nicolson, Folkestone’s CEO – Seniors Living.
Watermark Castle Cove is an outstanding example of the next generation of retirement living communities, which offers quality accommodation and premium facilities and services to an ageing population, Nicolson added.
Urban Development Award
Stage 1 of Watermark Castle Cove won the Urban Development Institute of Australia’s Best Seniors Living Development in 2011.
“We are delighted to be partnering with the Watermark Partnership on Watermark Castle Cove and to work with them on expanding this and developing other high quality seniors living accommodation in Sydney,” Nicolson said.
Watermark Partnership has extensive experience in the development and management of retirement living communities and is currently developing a number of retirement living communities with other new opportunities in the pipeline.
Nicolson added that the joint venture between the Watermark Partnership and Folkestone meets the objectives of both parties. Watermark gains a partner who is committed to the sector and brings expertise and resources in the form of capital, funds management, development management and retirement village operations.
“Folkestone secures a partner who is a proven and credible operator in the sector and who has a desire to grow their business. The combined resources of both parties will allow the establishment of additional high quality retirement living communities like Watermark Castle Cove to serve the increasing expectations of Sydney’s discerning retirees” said Nicolson. – BusinessNewsAsia.com