BBC currently owns and manages a portfolio of 56 RetirementVillages and 29 Aged Care facilities across Australia and NewZealand comprising 9,880 retirement living units and 2,256residential aged care beds. Greg Clarke, CEO of Lend Lease, sayshis company looks forward to a security-holder vote on Dec. 30. "Webelieve the retirement sector provides a number of strategicbenefits," he said in a statement.

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Lend Lease is paying 60 cents per security for more than 283million securities for $170 million, and 29 cents per share toacquire Babcock & Brown's 12.5% stake in the multifamilycompany. There will be a further cash injection by Lend Lease of$25 million through the issue of 100 million convertible notes of25 cents each. The developer is also paying $17.5 million for themanagement rights to BBC.

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Also, BBC has agreed to acquire Retirement by Design Villagesfrom Lend Lease for $133.4 million. The portfolio includes sevenexisting villages and an aged care facility, all owned by LendLease. The acquisition will be funded through the issue to LendLease of five-year redeemable convertible notes with a total valueof $120 million, and a cash payment to Lend Lease of $13.4million.

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Lend Lease had been offering almost double per share to acquireBabcock & Brown's stake in BBC, but lowered its price after themain firm's stock price dropped to an extremely low level. Therevised proposal, however, "provides BBC with a cash injectionwhich is required for future growth, it increases BBC's exposure tothe Australian retirement living sector, and allows BBC to benefitfrom the experience of Lend Lease's management," said members ofthe BBC independent directors.

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