Aveo Group is preparing to sell about $500 million in office and residential assets this year, according to industry sources. The real estate and aged-care developer aims to become a pure-play retirement firm by 2016, wrote Business Spectator.

Aveo Group, formerly called FKP Property Group, plans to divest most of its sub-divisions and residential community assets in 2014. With the surging property prices, the said assets are expected to fetch prices above book value. As of June 30, the company held about $767 million worth of non-retirement assets and has disposed of about $15 million worth of properties since, the report detailed.

The property and retirement firm's market capitalization is presently pegged at $1.1 billion, the report added.

The first assets to be divested could include the firm's Brisbane gasworks office complex and Luxe residential apartments in Sydney.

In 2013, Aveo exited its 38% interest in New Zealand-based retirement home operator Metlife. The said stake was sold at NZ$280 million, Business Spectator reported.