Keppel Corp proposes buying stake in Watermark Retirement Communities for US$77.29 million

Keppel Corp. said on Thursday its wholly-owned subsidiary, Keppel Capital Senior Living entered a conditional deal to acquire a 50 percent stake in U.S. senior living operator Watermark Retirement Communities and 50 percent of the minority interests held by Watermark’s owners in certain retirement communities it manages for around US$77.3 million.

“Against the backdrop of fast ageing populations across many regions, demand is growing exponentially for senior care services and retirement communities,” Loh Chin Hua, CEO of Keppel Corp. said in the statement. “Watermark is an established developer and operator of senior living communities with a strong track record. This acquisition is a strategic move for Keppel to expand into this new growth sector, leveraging Watermark’s deep expertise and agile business model. It will also expand the range of asset classes that Keppel Capital is involved in.”

U.S.-based Watermark manages 52 senior housing communities in 21 states, with another six communities under development, the filing said. It is ranked in the top 15 largest senior living operators in the U.S. by the American Senior Housing Association, with around 9,400 beds under management and assets under management of US$2.7 billion, it said.

Keppel Capital Senior Living is held through Keppel Capital Holdings, the filing said.

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