Rental village operator, SCV, with the Village Life and SunnyCove brands covering 59 communities and 3,301 ILU's, believes it has turned the financial corner thanks to leading its rental model away from the pension and Centrelink subsidies. Instead of receiving 85% of the aged pension and 100% of the government rental assistance in return for accommodation, three meals and linen service, SCVs new model charges market rental for accommodation, only with the resident having the option to buy food and other services. This has generated greater occupancy and higher returns, they report.
SCV also intends franchising the role of the village manager, creating independent small businesses, through revenue-sharing which will incentivize increased occupancy and profitability of the villages. The initial franchise fee of $120,000 is being prepared for 35 available SCV franchises.
Exclusive: Aveo to sell off its retirement villages in South Australia and Tasmania
Tony Randello, CEO of the nation’s leading retirement village provider, said the impending sale of its 16 retirement villages in South Australia and Tasmania “aligns with Aveo’s regular strategic review of opportunities across its portfolio”. The...