Firm advises on major retirement acquisition

A significant acquisition of almost 1,000 retirement dwellings prompts predictions that retirement infrastructure may be a new investment hotspot.

Lander & Rogers has advised Stockland on the $75.8m acquisition of a major portfolio of retirement villages, sparking speculation that the retirement infrastructure market may take off over the coming months.

The acquisition of the eight South Australian retirement villages from Masonic Homes contains 980 homes and currently has a development pipeline of an additional 130 dwellings, making it one of the largest retirement property deals so far this year.

Partners John Wells and Julian Olley were joint lead partners on the Lander & Rogers advisory team.  Wells said he expects further transactions in the retirement property sector, indicating that investment in retirement dwellings may become more main stream over the coming years.

“I think there is going to be more of a corporate focus on holding, building and acquiring these assets as the population ages,” he said.  “There are a lot of rumours of more portfolios that are being brought to market; my view is that there will be an increased corporatisation around these assets.”

The transaction is part of Stockland’s strategy to exit non-core villages and reinvest the funds into higher returning assets and development opportunities.

“It’s a big investment by Stockland into the expansion of its retirement living portfolio,” said Wells.  “It’s quite a significant transaction in Australia in the retirement living space over the past 12 months or so.”

“I think there is likely to be a number of not for profits that may look to divest,” he added.

Minter Ellison acted for Masonic Homes.

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