RetireAustralia – long seen as one of the sector’s most innovative operators under CEO Brett Robinson – has changed hands, with co-owner Infratil confirming on Friday (8 August) it will exit with a flat return.
Atlanta, Georgia-based global real estate investment management business Invesco, which has over US$80 billion in real estate assets under management, paid $845 million to the joint owners of Brisbane-based RetireAustralia, New Zealand-based infrastructure investment company Infratil and the New Zealand Superannuation Fund.
"As at 31 March 2025, the carrying value of Infratil’s investment in RetireAustralia was NZ$404 million, with the transaction expected to result in an accounting loss on sale of approximately NZ$80 million. The forecast sale proceeds are expected to preserve almost all contributed capital when taking into account capital contributed and distributions received, delivering an internal rate of return (IRR) close to nil over the ~11 year holding period," said Infratil’s NZX disclosure statement.
"Although at a loss, the decision to sell RetireAustralia is consistent with the strategy outlined at our full-year result, where we indicated our intention to divest businesses unlikely to scale under our ownership to increase balance sheet flexibility for reinvestment."
"When Infratil made its initial investment of A$215 million in December 2014, our market capitalisation was NZ$1.6 billion. With a market capitalisation now exceeding NZ$11 billion, and despite a positive outlook for the business, it is increasingly difficult for an investment of this size to deliver meaningful returns for Infratil shareholders."
When RetireAustralia was put on the market by Infratil and NZ Super in March 2022, the operator had a valuation above $1 billion and was taken off the market in December 2023 after a lift in profits.
RetireAustralia owns and operates 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 "the potential to deliver up to 800 units across seven projects across Australia" with 187 units currently under construction across three active sites:
- Tarragal Glen in Erina, 81km north-northeast of Sydney's CBD;
- Carlyle Gardens in Bargara, 384km north of Brisbane; and
- Arcadia Retirement Living in Yeronga, a riverside suburb in Brisbane's south.
In Infratil's FY25 financial report released in May, RetireAustralia achieved an underlying profit of AUD$80 million, a AUD$1 million increase on the prior year supported by strong resales and village price increases, offset by lower development settlements.