RetireAustralia back up for sale by owners Infratil and NZ Super for $1B+

The owner/operator of 29 retirement villages, which is about to open its sector-leading Aged Care Hub at The Verge At Burleigh on the Gold Coast, follows Aveo’s announcement it is selling 16 villages. 

After Mirvac and Pacific Equity Partners each bought 47.5% of land lease operator Serenitas in October last year, there has been a lull in mergers and acquisitions in the retirement living sector ageing sector.  

Infratil and NZ Super put RetireAustralia on the market in March 2022 with a reported price tag of over $1 billion. With its profits soring, the joint owners announced it was off the market in December last year. 

Now Jefferies Australia has been contracted to sell the operator, replacing Jarden and E&P.  

RetireAustralia made a record $95 million underlying profit to December 2023, an increase from $57 million from the 2022 financial year. The uplift was underwritten by better operating metrics, higher unit prices and returns on developments. 

The portfolio has an $802 million book value and is running at 93% occupancy, as of December 31. The average new unit was valued at $702,000 at June 30, 2023, an increase from $677,000 on the previous financial year. 

Jefferies, according to the Financial Review, is making the following pitch to potential  buyers. 

• RetireAustralia’s management team, led by Dr Brett Robinson, has just delivered record underlying profit, and is working on care hubs – the integration of care into the villages, with a goal of attracting older customers – as a major growth lever. 
• RetireAustralia is a scarce and high-quality portfolio, with established turnover, a solid development pipeline and delivery track record including verticals and apartments.