In its maiden voyage into the retirement living sector, Qualitas has purchased three retirement villages from property group Stockland for a combined total of $59 million.
The portfolio includes Burnside Retirement Village, Taylors Hill Retirement Village and Keilor Retirement Village, all located in Melbourne’s north-west, comprising 649 dwellings, and home to more than 900 residents.
Qualitas Principal Investments managing director Mark Fischer described the investment as a counter-cyclical opportunity that would benefit from the long-term demographic trends of an ageing population.
“Qualitas was attracted to the strong occupancy rates and the long-term value-add potential of the villages, being within well-established residential communities in the northwestern growth corridors of Victoria,” Fischer said.
“The retirement living sector is undergoing structural changes underpinned by favourable demographics and industry drivers.
“We see significant opportunities for these assets to deliver strong, risk-adjusted returns to investors going forward.”
Stockland chief executive Andrew Whitson said the group was focusing on reshaping its portfolio.
“The sale of these assets aligns with our active capital recycling strategy from non-core villages,” he said.
Just this week, the diversified property group lodged plans for a $70.6 million high-density development in inner-Sydney.
Qualitas appointed Centennial Living to operate the villages, a group founded by Derek McMillan, formerly CEO of Australian Unity’s retirement and aged care business.
Established in 2008, Qualitas manage more than $2.2 billion committed capital.
The settlement of the three Victorian assets is expected to be complete by May 29.