Future Fund put part of $261 billion portfolio into retirement living
Greg Combet AO, Chair of the Future Fund Board of Guardians, confirmed where the investment went.
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.
However, former Labor politician and Cabinet Minister, former leader of the Australian Council of Trade Unions, Greg Combet AO, Chair of the Future Fund Board of Guardians, said the Future Fund had a new investment mandate.
“We have also made significant investments in infrastructure and housing – including a 10% stake in Transgrid, which is the largest electricity transmission operator and is critical to the energy transition – plus investments in student housing and land lease developments for people transitioning to retirement," Greg said.
There have been notable new entrants to the seniors land lease community sector in the past 12 months, including Macquarie Asset Management. GemLife floated on the ASX in July.
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.
