New CEO of Aveo parent company FKP, Geoff Grady, has confirmed the company is exiting the commercial and residential property market so it can exclusively focus on its Aveo retirement business, currently worth $1B and covering over 70 villages and 12,500 residents.
Importantly, Grady confirms that care will be a cornerstone of its strategy. They look to reengineer their villages into co-located sites. Currently they have little care in their portfolio but they have experience thanks to their investment in Metlifecare in NZ, of which Grady is on the Board.
This means FKP has to sell out of approximately $600M in land and other developments it has on the books, which could take up to two years. FKP looks to change its name to AVEO Group.
Grady states he will be responsible for the care initiative within the group while Alison Quinn will be responsible for the village development side. They do not look to acquire more villages but develop new ILU stock within its existing portfolio.
There is a view that once it is an exclusive retirement business, a two year process, it would be in a position to make an offer to buy Stockland's village business.
