RetireAustralia owner’s $2.8B plunge on new seniors housing portfolio
Invesco doubles down on global senior living investment
- Major deal: US$2.04bn investment in 25-facility US portfolio
- Strong momentum: Follows $845m acquisition of RetireAustralia
- Market rebound: Demand and fundamentals back to pre-pandemic levels
- Growth outlook: Rapid ageing population driving sector expansion
Global real estate investment firm Invesco has long viewed senior living as a significant and lucrative investment.
Invesco Real Estate acquired Queensland-based retirement village operator RetireAustralia for $845 million from joint owners Infratil and the New Zealand Superannuation Fund in August last year.
Now the firm has reportedly paid US$2.04 billion to alternative investment management firm Kayne Anderson for a majority stake in a new, yet-to-be named senior housing portfolio. Kayne Anderson retains a minority stake.
The 25-facility portfolio operates 3,600 independent living, assisted living and memory care units across 14 US states.
“Senior housing fundamentals have rebounded to pre-pandemic levels due to improved economic conditions coupled with a sharp reduction in new inventory,” said Joshua Siegel, Managing Director – Invesco Real Estate; National Co-Head Acquisitions.
America’s 80-plus population is projected to surge by more than 70% over the next nine years, with senior living expected to be the fastest-growing real estate subsector through 2029, according to Investcorp research. The firm recently reinforced this outlook with a US$200 million acquisition of two senior living facilities and a multifamily complex.
Atlanta-based Invesco Real Estate has a strong track record of investing in the seniors living sector across South Korea, Australia, and the US.
