Ian Schilling, who heads Invesco Real Estate Asia-Pacific, said the seniors land lease market is a "high-conviction investment theme" for the Atlanta-based business.
Invesco Real Estate (49.9%) has entered into a strategic open-ended partnership with Stockland (50.1%) to develop and hold an initial portfolio of three land lease community assets in a newly established Stockland Land Lease Partnership (SLLP1) which is expected to generate approximately $1.1 billion in gross development revenue.
Australia matched US
In 2024 Australia recorded US$656 million of LLC investment volume, which is nearly equal to the US$667 million of transaction activity in the US, the largest manufactured housing market in the world, according to investment analyst MSCI.
The total investment volume includes asset and entry level deals. In Australia, the figure was buoyed by Mirvac's 47.5% stake in land lease operator Serenitas.
Ian (pictured) said the land lease model is "more community based" and has been attracting younger retirees than retirement villages. Invesco, in April 2023, launched a manufactured housing investment company Homestead Communities in the US.
Benjamin Chow, head of real estate research Asia at MSCI, said the increased investor interest in land lease communities is due to the country's robust growth drivers: the economy and population.
"I think the interest in manufactured housing in 2023-24 is more about the stability of cash flows and the durability of the sector rather than a crowding out of other residential sectors,” Benjamin said.
"Generally, residential sectors have demonstrated less correlation with macroeconomic cycles in terms of overall property returns and are hence perceived to be more resilient during periods of subdued economic growth."
Browse villages.com.au for the latest on Seniors Living including availability.
The Practical Usage of AI in the aged sector: Conversations at the Wharf with Ausmed
