Property giant Lendlease has entered into a development agreement with the Brisbane Racing Club to develop an integrated retirement and aged care precinct overlooking the Doomben racecourse.
Developed over five stages, the two-hectare development will include 300 independent living units, 108 full service high-care aged beds and resort-style facilities including a café, restaurant, and a new bowls club.
The Brisbane Racing Club is developing a $1.5 billion master plan, which includes the “reinvigoration” of an 89-hectare site in Brisbane’s Ascot, with Mirvac building the residential component, designed by BVN.
Lendlease’s deal with Brisbane Racing Club comes as the developer re-entered the aged-care sector last year, purchasing 756-bed licences from the federal government on the eastern seaboard and finalising an alliance with Catholic Healthcare.
In 2013, the company had exited the aged-care business, selling its aged-care business to Archer Capital for $270 million. Chief executive Steve McCann said at the time that the aged-care business was more closely aligned to healthcare services than property.
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Tony Randello, managing director of Lendlease’s Retirement Living business, said the company was attracted to the Doomben site’s metropolitan location within seven kilometres of the Brisbane CBD, proximity to Royal Queensland Golf Course, Hamilton Wharf, Racecourse Road and the Brisbane International Airport.
“The site provides an opportunity to develop a market leading, intergenerational retirement and aged care community adjacent to a renowned racecourse,” Randello said.
“We look forward to working in close consultation with BRC, local authorities and the local community to develop the master plan and respond to the ageing population of greater Brisbane.”
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The chairman of Brisbane Racing Club, Neville Bell, said the project was another important step in the BRC’s $1.5 billion master plan.
“This development agreement represents the next phase of the BRC Master Plan over our two racecourses. While we have been active in transforming the Eagle Farm precinct, this is the first project on the Doomben side of our Club,” Bell said.
“This partnership with Lendlease is part of the BRC’s strategy to develop our non-core land. This is producing a diversified business model that will future-proof the BRC and help to fund new racing and patron facilities.”
Lendlease participated in an expression of interest sales process to acquire the site, which is a 99-leasehold interest.
In October, Lendlease announced a sale of 25 per cent of its $1.7 billion retirement living business to giant Dutch fund APG Asset Management in order to support its development plans, with APG being seen as a capital partner with a similar vision.
Lendlease has 71 retirement villages across Australia.