Future Fund put part of $261 billion portfolio into retirement living
In retirement living, there has been just one significant acquisition in the past 12 months.
It was almost a throwaway line – but the implications for anyone looking to develop in the retirement living sector are big.
Future Fund Chief Executive Raphael Arndt told investors that in real assets, the sovereign wealth fund has added to its portfolio of Australian infrastructure assets since May 2021, investing in Sydney Airport, Transgrid and CDC Data Centres, along with retirement and student accommodation.
In retirement living, there has been just one significant acquisition in the past 12 months: Brookfield Asset Management's sale of its retirement living platform Aveo to The Living Company.
The A$3.85 billion deal – which The Living Company Founder and Joint CEO Craig Carracher says was closer to $4.5 billion – is the largest direct real estate transaction in Australian history.
The transaction was backed by South Korea’s National Pension Service, but it now appears the Future Fund also played a role – a potentially game-changing signal for the sector.
The Future Fund targets returns of 4-5% above inflation, underlining the confidence it sees in retirement living as an investable, long-term asset class.
