Aug 8 (Reuters) - Domestic utilities investor Infratil ( IFUUF )

and New Zealand's state-run pension fund and have

agreed to sell their entire stake in a retirement village

operator across the Tasman Sea for A$845 million ($551.11

million).

Infratil ( IFUUF ) said on Friday it currently expects to

pocket A$300 million worth of proceeds from the deal as it

continues to do further work towards the NZ$1 billion ($596.20

million) divestment target.

The New Zealand Superannuation Fund and Infratil ( IFUUF ), a company

that invests in infrastructure assets formed an equal share

consortium in 2014 to take over RetireAustralia for A$640.2

million.

The New Zealand-based entities are now selling 100% of the

retirement village operator to the global real estate investment

business of U.S.-listed Invesco ( IVZ ).

Despite a positive outlook for RetireAustralia, Infratil ( IFUUF )

said the scale of the business no longer aligns with its

portfolio strategy.

"With a market capitalisation now exceeding NZ$11 billion,

and despite a positive outlook for the business, it is

increasingly difficult for an investment of this size to deliver

meaningful returns for Infratil ( IFUUF ) shareholders," the company said

on Friday.

Infratil ( IFUUF ) added it expects to record an accounting loss of

about NZ$80 million for the sale, based on a carrying value of

NZ$404 million as of March-end.

($1 = 1.5333 Australian dollars)

($1 = 1.6776 New Zealand dollars)