Stockland Retirement CEO, David Pitman, predicts middle size operators are headed for trouble
David Pitman has come out in a rare appearance in the media talking down the value of retirement village development sites. He also made the prediction for midsized operators, saying If youre very big you can make good returns and if youre...
David Pitman has come out in a rare appearance in the media talking down the value of retirement village development sites. He also made the prediction for midsized operators, saying If youre very big you can make good returns and if youre very small you can make good returns and if youre in the middle you have what I call the valley of no return. It takes a long time to get out of that valley. Stockland want to acquire villages but says sellers want too much. Stockland currently own 60+ villages with 7,800 ILUs worth over $2.5 billion; they have invested $1.13 billion of their own shareholders funds. Their current village building program is worth $253 million plus they have land for 3800 ILUs across 27 sites for future development. Then there is their strategic holding in FKP/Aveo.
