CEO Tony Randello said the Brookfield-owned business has agreed to sell its 13 remaining retirement living communities, with 1,033 units, in South Australia to Not For Profits Resthaven and Eldercare, who are both part of the UnitingCare Australia network.
UnitingCare Australia is the national body for the Uniting Church’s community and aged care services network. Brookfield and the Uniting Church signed a deal over the weekend that valued the 13 retirement homes at $122 million.
Sources said the sale price represented a 10% premium to book value and an attractive 9% cash yield, which was achieved by strong unit sales this year and a 12% compounded growth in underlying prices over the past three years.
Resthaven operates 20 retirement villages and delivers residential and community care services throughout South Australia. The operator will take over 799 units across 11 villages. Its CEO Darren Birbeck said the purchases increase its retirement living portfolio substantially. The acquisition complements Resthaven’s strategy of planned and considered growth and includes the transfer of approximately 90 home care recipients, he added.
Eldercare, which operates 12 retirement villages and residential aged care services, will resume responsibility for two villages with 234 units.
“With the addition of Carisfield in Seaton and The Braes in Reynella, Eldercare’s Retirement Living portfolio will expand in two new areas that are located close to existing Eldercare residential aged care homes,” said Jane Pickering, Eldercare Chief Executive.
The 13 Aveo retirement communities in South Australia experience high occupancy. This transaction follows the sale of Aveo’s Kings Park Retirement Village, 4km south of Adelaide's CBD, to Adelaide investment firm ICAM; and Ackland Park retirement village to Auscare when Aveo announced it was selling its South Australia and Tasmania retirement villages in April.
Brookfield announced in June it was seeking to sell Aveo for $3 billion and it has become an Eastern Coast of Australia operator.
Tony said the terms of current residents’ contracts will not change and will continue to be honoured by Resthaven and Eldercare.
“Aveo will be working closely with Resthaven and Eldercare to ensure a smooth transition, and it remains committed to supporting residents and employees during this time.
"The transition process will begin immediately and is expected to be complete by November 2024.”
