The boutique investment house, which raised the money to buy four Stockland retirement villages in Victoria in 2020, has set up a second retirement living fund to buy another four villages after generating 54% capital growth in three years.
“The retirement living sector has grown significantly over the last 15 years and offers investors an investment with reliable cashflows underpinned by residents’ average age and average length of stay,” Prime Value Asset Management co-founder and CEO, Yak Yong Quek (main picture), said.
It bought La Trobe Village in Reservoir, 11km north of Melbourne’s CBD; Long Island Village in Seaford, 36km southeast of Melbourne’s CBD; Cameron Close Retirement Village in Burwood, 14km east of Melbourne’s CBD, and Bundoora Retirement Village in Bundoora, 15km northeast of Melbourne’s CBD.
Prime Value Asset Management gave the operation of the four villages, with 840 homes, to Centennial Living and its Managing Director Derek McMillan (pictured right), the inaugural President of the Retirement Living Council.
The success of Prime Value’s retirement village investment
“Over the last three years, returns have been strong, and our knowledge of the sector has continued to grow. The fund has paid distributions of 8.4% per annum to investors since inception”.
“The portfolio value has also increased significantly and is 54% above acquisition price based on independent valuation. We continue to believe that retirement living offers attractive long-term growth potential for our investors,” said a spokesperson.
Prime Value will invest in four A-Grade villages in Victoria, comprising approximately 900 dwellings, which are close to 100% occupied.
“These assets have been acquired at an attractive price and represent good potential returns for investors, via a combination of regular income and capital growth,” said Yak.
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