Australian Unity's Retirement Village Property Fund (RVPF) has acquired Morven Manor Retirement Village, and plans further acquisitions in the Sydney area.
"Ideally the next acquisition would be in the Sydney metropolitan area as funds are available,"Australian Unity Investments head of healthcare and retirement property funds Chris Smith told InvestorDaily.
"We are creating a fund that has some geographic diversity as well as different types of property and different price points so overall the investor is then able to spread their risk across multiple geographic locations and housing markets."
"We are now at 20 properties and over $420 million in growth assets and that's been going since 1999 so this is an organic product that has humble beginnings and is growing steadily and slowly as funds become available and trying to find the right opportunity that fits within our investment criteria."
Morven Manor Retirement Village has 86 independent living units and a wide range of community and recreational facilities for residents. Once the purchase is completed, Australian Unity Retirement Living (AURL) will become the operator of the village.
Smith explained that as the property has retirement living units rather than being an aged care facility, that it doesn't face the same continuing issues of uncertainty over bonds.
"This was an excellent opportunity to acquire a well-established retirement village with strong long-term growth prospects, in a location with strong underlying demand for retirement living," Smith said.
"With Australia's ageing population, we anticipate that demand for retirement communities will continue to grow and those in attractive locations with high-quality facilities, such as Geelong Grove and Morven Manor, have good long-term fundamental benefits, which will support the value of the portfolio."
The move is the company's second acquisition this year following its purchase of the Geelong Grove Retirement Village in September.
"Well-managed retirement villages, offering the services and lifestyle facilities that residents desire, are proving increasingly attractive to older Australians. As a result, they are also attractive to investors, who benefit from the higher occupancy levels, better yields and strong capital growth," AURL general manager of commercial Robert Putamorsi said.
"We are continuing to enhance and develop the villages that we operate in order to deliver the lifestyle that residents are looking for, as well as achieve returns for investors."
