The Atlanta, Georgia-based global real estate investment management business, which has over US$80 billion in real estate assets under management, has forked out $845 million for the Brisbane-based retirement village operator.
Invesco Real Estate will purchase RetireAustralia from Infratil and the New Zealand Superannuation Fund, which each hold a 50% interest in the operator. Both shareholders’ interests are managed by infrastructure investment manager Morrison.
Infratil and NZ Super had paid $640.2 million for RetireAustralia in December 2014.
Today, RetireAustralia is one of the largest players in Australia's retirement living space, with 29 retirement villages across NSW, Queensland and South Australia, comprising over 4,300 independent living units, serviced and care apartments.
In addition, the operator has a robust development pipeline with the potential to deliver up to 800 units across seven projects across Australia.
The acquisition follows Scape Australia's recent $3.85 billion purchase of Aveo from Brookfield Asset Management.
"The acquisition of RetireAustralia represents a unique investment opportunity to expand Invesco Real Estate’s presence in Australia’s rapidly growing senior living sector," said Calvin Chou, Head of Asia Pacific, Invesco Real Estate.
"The country’s ageing population, coupled with their rising wealth, is driving demand for alternative aged care solutions, and RetireAustralia’s care-centric operating model is well positioned to meet this need. This investment aligns with our objective of diversifying our portfolio with high-quality assets, enabling us to consistently deliver robust income and capital growth.”
Invesco already has a vested interest in Australia's land lease sector. In June last year, Invesco Real Estate (49.9%) entered a strategic open-ended partnership with Stockland (50.1%) to develop and hold an initial portfolio of three land lease communities, a deal expected to generate approximately $1.1 billion in gross development revenue.
Dr Brett Robinson, Chief Executive of RetireAustralia, added: "Invesco Real Estate’s focus on long-term investment trends, combined with its strong track record of investing in the senior living sector across South Korea, Australia, and the US, position it as an ideal shareholder and partner for RetireAustralia. By working together, I believe we will create thriving communities where more older Australians can live and age well, meeting the country’s growing need for highquality seniors housing and care as we address evolving demographics.”
The transaction is subject to regulatory approval and is expected to be completed in the final quarter of the 2025 calendar year.
