Noral Wild, International Director, Head of Alternatives – APAC, at Cushman & Wakefield, confirmed to the audience at LEADERS SUMMIT that there is international investor interest in the retirement living sector.
"The investor interest in the sector is strong,” she said and cited a survey by Asia Pacific Real Assets Association (APREA) that showed senior living in Australia is highly favoured in the alternative class.
"My sources say senior living's on trend. Effectively, we see that it's rating extremely high as a preference for investment. Australia, in particular, is very, very high as a geographic region to invest in,” Noral said.
International investors prefer there be a development pipeline, for higher profit margins, and a pipeline of development or acquisitions that can utilise their cash. For instance five instalments of $50 million each over three years would be a desirable proposition.
"Definitely land lease communities is something the investors like. They love the rental model. It's simple, they understand it. Then retirement living, as long as they can get their heads around that.
"When we're talking to people about alternatives and what they're interested in, the flavour of the month is definitely seniors, as in land lease communities and villages. And the other one that's very hot at the moment, is student accommodation."
Noral added that the overseas investors seek operational assets generating cash flow and the other component that they really want is a development pipeline.
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