The International Director, Head of Alternatives – Asia Pacific, told the Westpac Conversations in Melbourne that she is getting up to five calls a week from overseas investors looking at Australia's retirement living sector.
"Capital is seeking investments that can offer enhanced return profiles; retirement villages can be attractive in this regard as the cash flow is a combination of business and real estate returns typically averaging higher than a pure real estate play,” Noral Wild told The SOURCE.
"Retirement villages that have co-located aged care that is separately owned are desirable. Investors understand the benefit of having the additional care available within the village setting. These villages are attractive as the investor is not required to invest into the aged care component but can invest in the village which benefits from the presence of the aged care."
Norah added that there is a growing interest of capital seeking a home in seniors living to gravitate towards the Manufactured Home Estates sector "as it is an easier financial model to understand and predict."
Offshore capital and domestic superfunds have shown an appetite for Retirement Village investment, with the likes of Aware Super, Brookfield, APG, Gaw Capital and EQT having committed significant capital into retirement portfolios over the past five years.
Sophie Fallman, Managing Partner in Brookfield's Real Estate Group and Head of Real Estate in Australia, backed Noral’s words.
“As a dominant institutional player in the Australian senior housing market, businesses like Aveo Group are well positioned to capitalise on increasing supply and demand imbalances,” she said on Brookfield Asset Management - Asia Pacific’s LinkedIn page.
Browse villages.com.au for the latest on Seniors Living including availability.
