The global investment firm is embarking on a strategy to provide a continuum of care in Stockland’s 58 retirement villages and 10 communities in development – and care will be key to its value proposition to residents.
As we reported last month, EQT Infrastructure were announced as the successful buyer of Stockland’s Retirement Living business on 23 February following a seven-year search for a capital partner.
EQT Infrastructure Director, Sam Franklin, says the firm likes the fundamental underlying tailwinds of providing care and support for an ageing population.
“We see the New Zealand continuum of care model, which is much more developed, being a very attractive model because what we see is it provides a real sense of certainty and security for residents coming into those villages,” he said.
“It provides a balance between the more property-linked retirement living and the more Government funding-linked care which is better for the residents and the operators. You can ensure the number one focus is always the provision of high-quality care without trying to manage for capped government revenue and rising costs.”
Moving forward, Sam says that EQT’s first goal will be to provide the business with the capital to continue to grow through new development.
Their second goal will be to increase the provision of aged care services into the villages, including home care and residential care.
“Australia has a different regulatory and funding model, which actually has some real benefits, particularly around the ability to provide home care directly into villages,” explained Sam.
“We have an investment in Five Good Friends and that’s a big focus of what they do. The ability to enable people to age in place and provide that same sense of certainty within the retirement villages that is provided in New Zealand is a proposition which we see is very valuable.”
Stockland already has partnerships with residential aged care providers at a number of its villages which will be expanded into its new villages and potentially the existing portfolio too.
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