Qualitas to acquire retirement living portfolio from Stockland
Real estate investment manager Qualitas has entered into an agreement to acquire three retirement living villages, located in Victoria, from Stockland.
The portfolio of Burnside Retirement Village, Taylors Hill Retirement Village and Keilor Retirement Village, located in Melbourne’s north-west, is made up of 649 dwellings, housing over 900 residents. Qualitas has appointed Centennial Living to operate the villages.
The transaction will be Qualitas’ first investment in the retirement living sector, said Mark Fischer, Managing Director, Principal Investments.
“Qualitas considers the investment to be a counter-cyclical opportunity suitable for sophisticated private capital with the investment thesis benefiting from the well-understood, 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 north western growth corridors of Victoria.”
“The acquisition continues Qualitas’ diversification into investments that provide long term cash flow to investors whilst supporting the fundamental human needs of the community.”
Centennial Living is founded and led by highly-regarded retirement living industry executive Derek McMillan, who was previously the CEO of Australian Unity’s retirement and aged care business and held senior roles within key retirement industry bodies. Qualitas considers Mr McMillan to be a leading industry expert who brings significant experience and insight to the sector.
“Right from our first engagement it was clear that Qualitas understood that a successful investment in retirement living is underpinned by creating sought-after places to live. It was critical to Centennial Living that we partner with an organisation that supports our focus on resident quality of life.”
Mr Fischer said the firm hopes to increase its exposure to this asset class in future.
“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.”