Ryman Healthcare offloads another Victorian village site
Ryman Healthcare had approval for a $317 million continuum-of-care village, including 104 independent apartments, 27 assisted living suites and a 60-bed aged care centre.
The NZ-based operator has sold another Victorian development site as it continues to reduce its Australian land bank and pay down debt.
Ryman Healthcare has confirmed it will not proceed with its long-planned village at Mt Eliza’s Moondah Estate on the Mornington Peninsula, instead selling the 8.9-hectare clifftop property for around $35 million. Ryman paid a reported $37.5 million for the former Melbourne Business School campus in 2016.
The decision ends almost a decade of effort to secure approval for a $317 million continuum-of-care village, including 104 independent apartments, 27 assisted living suites and a 60-bed aged care centre alongside the restoration of the 42-room Moondah Mansion.
The project became one of Victoria’s most contested developments, facing sustained opposition from Mornington Peninsula Shire and community group Save Sir Reg’s Wedge over green wedge, traffic and amenity concerns.
Council twice refused the proposal before Ryman won approval at VCAT in late 2022. The permit required construction to commence within three years – a window now closing with no works started on site.
Ryman’s retreat comes as the operator works to stabilise its balance sheet. The group recently reported its first positive free cash flow in more than a decade but still posted a NZ$45.2 million (A$39.5 million) net loss after tax while total vacant stock has climbed to 1,355 units.
As part of a broader land bank review, CEO Naomi James has flagged two disposals – Park Terrace in Christchurch and Mt Eliza – contracted for a combined NZ$77 million (A$67.5 million), with settlement of the Mt Eliza sale expected in the second half of 2026.
Ryman took $9.1 million for 9,065sqm of land adjacent to its Nellie Melba retirement village, which is now one of Australia’s largest villages, in May this year.
In October, Cushman and Wakefield also listed the 2.56-hectare Coburg North site Ryman purchased in May 2023 for $48.2 million. The block – the former Federal Government’s Australian Defence Apparel site – was to be transformed into a $350 million integrated retirement village, touted as Ryman’s “biggest-ever project” in Victoria.
Ryman held a NZ$1 billion equity raise in February followed by a refinancing of its NZ$2 billion in bank facilities in November. The group had NZ$1.65 billion (AUD$1.44 billion) in net debt as of 30 September, down NZ$14.1 million (AUD$12.3 million) from six months ago.
