Aware Super has entered into an agreement to acquire an additional 24.9 per cent in the Lendlease Retirement Living Trust for $490 million, Lendlease confirmed in a statement on Thursday.

The latest acquisition will take Aware Super’s holding in the Lendlease Retirement Living business to 49.9 per cent, following its initial purchase of a 25 per cent stake in March 2021.

Upon completion, Lendlease will hold a 25.1 per cent interest and Dutch pension asset manager, APG Asset Management, will hold a 25 per cent interest.

“Today’s announcement that Aware Super will acquire an additional interest in the Lendlease Retirement Living Trust further cements the relationship between our two organisations,” said Lendlease Global CEO Tony Lombardo.

“Strategically, we flagged sometime ago our intent to further reduce our ownership of Retirement Living, consistent with our strategy to reallocate capital towards the delivery of our $112 billion development pipeline and grow our investments platform.”

The acquisition includes ownership of Lendlease Retirement Living’s retirement village portfolio, which comprises 75 retirement villages that are home to approximately 17,000 residents across Australia, as well as its associated operating platform and retirement living development pipeline.

The Retirement Living business will continue to trade under the Lendlease Retirement Living brand, Lendlease confirmed.

“We believe this is an exciting opportunity for Aware Super’s members, to increase our interest in a high-quality investment that makes a real difference to the lives of retirees every single day,” said Aware Super chief investment officer, Damian Graham.

“Through our deep relationship with Lendlease, and our years of experience supporting Australians as they prepare for, and transition to retirement, we see enormous potential for the future of retirement living,” Mr Graham noted.

Aware Super has previously invested in Lendlease urbanisation projects across the US.