Village operator focus: Gannon Lifestyle Group delivers 75 new village homes in FY14-15

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Over the past 12 months the SA based Gannon Lifestyle Group has sold 75 new village homes and serviced apartments across four villages. They have achieved this with just eight HO staff. Resales are additional. This ranks them the 10th largest village developer across the country.
They concentrate on regional markets, with villages in Angle Vale (SA), Wodonga (VIC), Griffith (southern NSW) and Tamworth (northern NSW). They have three separate Retirement Village Acts to manage.
The Gannon family are veterans of the village sector. Mavis and Tom Snr led the family in developing nine villages up to their sale to Meridian (now RetireAustralia) and 2007. Watch a video of Mavis and Tom Snr HERE and the Gannon value proposition which focuses on resident satisfaction to generate local goodwill.
Each location is treated as a standalone village with its own website, rather than a corporate website, and are not referred to as Gannon villages. For instance check their website HERE for Griffith Retirement Estate. It
Brothers Tom and Michael Gannon launched this new company in Adelaide in September 2008 (seven years ago), the week that Lehman Brothers collapsed in New York with the emerging Global Financial Crisis. South Australia has suffered the most of any state since. (It’s current unemployment rate is 8.2%).
They successfully fund their village development utilising private investor syndicates, usually with the support of Deloitte Private in Adelaide.
Tom (pictured), the solicitor, is responsible for investor relations and building each village ‘community’. Michael, the builder, is responsible for construction. Jane Monk (pictured) is CEO and is responsible for day-to-day operations. All three travel constantly.
A cornerstone in the marketing mix of all Gannon villages has been serviced apartments. In Griffith in 12 months they have commissioned 12 ILUs but have presold 14 serviced apartments that will be delivered in October. At Angle Vale its eight serviced apartments and 20 ILUs.
They see serviced apartments providing a care path for residents and at $175,000 (in Griffith), they require less money than a bond at $300,000. The Gannon’s are partnering home care providers to support each village.
Regional areas appeal to the Gannon’s with each selected for its unique attraction – especially lack of accommodation competition. Tamworth is also attracting people out of Sydney in the sub $350,000 price range and the area is enjoying significant regional development.
May delivered record deposits for them and June was their best sales month on record – all in the middle of winter and isolated from city home price hikes.

Griffith
http://www.griffithretirement.com.au/

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