The sale will generate a $61 million surplus for our largest village operator after allowing for the retail and commercial complex’s carrying amount of $180 million.
Aveo CEO Geoff Grady said it was “opportune” to capitalise on the value of the Plaza with the capital to be recycled into its higher returning retirement development projects.
Construction on its 19-storey Newstead retirement village tower is due to be completed in May.
Aveo’s sales fell 40% on the back of the Fairfax/Four Corners media coverage of the retirement village sector last year, but have since recovered.
At their recent AGM, Aveo predicted 60% of their sales will be delivered in this January to June half.