Aveo invests $101M to increase contriol of RVG villages
Aveo has bought out 11 institutional investors in the Retirement Village Group (RVG) for $101M, delivering 31% of the village investment fund. This takes Aveo to 73% ownership of 28 retirement villages delivering 3400 retirement Village. Eleven...
Aveo has bought out 11 institutional investors in the Retirement Village Group (RVG) for $101M, delivering 31% of the village investment fund. This takes Aveo to 73% ownership of 28 retirement villages delivering 3400 retirement Village.
Eleven investors agreed to sell, leaving just one (REST Indusry Super) who has 27%. REST must believe in the Aveo story.
Aveo paid 22 cents per security, a 21% discount on the current security value a good deal. For istance Aveo paid 24.75 cnets (12% discount) 11 months ago to Macquarie and Telstra Super.
Aveo CEO Geoff Grady states ownership and control will enable Aveo to have a greater influence on the strategic direction of the villages which are older villages in metropolitan locations. Many of the villages are ideal for the introduction of the Freedom Care Plan, a resident funded aged acre insurance style product which wil significantly enhance the value and return to Aveo.
The purchase, Aveo claims, will add significantly to Avoes bottom line return taking earnings per share to 7.5% or more next financial year.
Freedom Home Care Villages a asignificant strategy for Aveo
Last week Fredom Aged Care founder Paul Browne, Executive GM Simon Fawssett at Freedom (Pictured) and Anthony Sargent, GM Product Development and Strategy at Aveo, discussed the importance of the recent acquisition of the 15 village Freedom Aged Care.
Freedom gives Aveo another product line to offer the consumer a care plan under the Retirement Village Act
