Property and retirement village operator Stockland plans selling its strategic 14.9 per cent stake in rival group FKP, parent of Aveo. Stockland CE Mark Steinert (pictured) announced the news along with the group’s full year result.

Stockland made a net profit of $104.6 million for the 2012-13 financial year, a drop of 78.5 per cent on the previous year.

Steinert said it was more cost effective to sell the stake in FKP stake and focus on managing Stockland’s own retirement living assets. More attractive is building then selling an ILU in a retirement village, and receiving exposure to the assets’ management fees.

“This becomes a capital-light model,” Mr Steinert said, adding that Stockland was under no time pressure to sell and “we will be market aware of how well as we don’t want to impact negatively FKP when we sell down.”

The $70m cash injection, when it comes, would be used across the business, including residential communities.