New Zealand investment fund Infratil, which owns 50% of RetireAustralia, revealed strong performance by the village operator in its report to investors.
Comparing the six month performance between 2020 and 2021, underlying profit increased from $13.3M to $22.8M, a jump of 71%.
Unit resales increased 85% from 138 homes to 255 for the six months, perhaps reflecting market conditions under COVID 1 and COVID 2.
New unit sales jumped from 7 to 41, with an average price also jumping from $502K to $732K, an increase of 46%.
“This strong performance resulted in 15 of RetireAustralia’s 28 villages now operating waiting lists. Overall occupancy increased to 91%, against the Australian industry average of 87%.
“Given the strong performance in the first half of the year, RetireAustralia is forecasting total sales for FY2022 of 480-500 units compared to last year’s 343 and the original budget of 442.”
RetireAustralia, whose Chair is Peter Coman and CEO Dr Brett Robinson, is building new units at four sites: 34 apartments are being built at The Rise at Wood Glen, and 22 units at Forresters Beach, both on the NSW Central Coast. In addition, 66 apartments are being built at The Verge, and at a new 94 apartment village, The Green, both in Queensland’s southeast.
“With home care services on site, The Green will offer residents an exceptional independent lifestyle, with back-up supports. It is an exemplar of RetireAustralia’s vision for the retirement communities which it is planning to build,” said Infratil.
“RetireAustralia is now focused on building up its development pipeline for the next five years and beyond. Several projects are at the feasibility stage or have development applications underway.”
RetireAustralia is proposing medium density retirement living at The Green Tarragindi, in Brisbane’s inner south, a redevelopment of its Caroline Chisholm Retirement Village in Lane Cove, on Sydney’s lower north shore, and is reviewing a proposed development Fancutts Retirement Living Lutwyche in Brisbane’s inner city.