Australian Unity has received soft commitments from a number of superannuation funds for its retirement villages fund.
The commitments range from $30 to $200 million but the investments have not yet been finalised.
Australian Unity chief executive Derek McMillan said investing in retirement villages complimented the investment profile of a superannuation fund.
“Retirement villages do not generate a lot of cash up front but their value increases over time. This suits the investment profile of a super fund that tends to hold investments for the long-term,” McMillan said.
The unlisted fund was launched in September last year and aims to generate a return of 4 per cent over the benchmark of rolling ten-year Australian bond yields.
The business already has a stake in 15 retirement villages managed by its retirement living business.
He said that Australian Unity would be open to working on joint ventures with superannuation funds in the development of retirement villages.
“We have a long history as a recognised provider of retirement living services. We would be happy to work in partnership with [superannuation] funds if they want to expand their investments in this area,” he said.
