Australian Unity has launched a retirement village property fund to institutional investors.
The unlisted fund aims to generate a return of 4 per cent over the benchmark of rolling ten-year Australian bond yields.
Up to 50 per cent of the return will be generated from income from the retirement villages, and 50 per cent will be generated by long-term capital appreciation of the properties.
The business already has a stake in 15 retirement villages managed by its retirement living business.
The fund, however, will invest in properties outside the existing properties that Australian Unity owns.
"We feel the time is right to launch our fund. There are now a lot of opportunities in the sector. It also allows us to bring both our investment and retirement living businesses together," Australian Unity Investments head David Bryant said.
"Our close relationship with Australian Unity Retirement Living means we will be able to identify suitable properties to consider for the portfolio."
The firm also revealed its results, reporting revenue of $934 million for the 2010 financial year, up from $617 million in 2009.
Australian Unity's merger with Lifeplan Funds Management last year and growth across its businesses pushed its profit after tax to $17.1 million, up from $1.1 million in 2009, a statement from the firm said.
The financial advice business increased funds under advice by 29 per cent with 50 planners.
