As operators weigh up whether to embark on new developments, this industry expert says operators should lower their return expectations now and put beds on the ground in return for a bigger pay day later.

With StewartBrown reporting residential aged care providers won’t reach a return of at least 4% for another four years under the Government’s aged care reforms, Colliers’ Director, Advisory Services for Healthcare & Retirement Living, Bruce Message, says the sector needs to balance returns with growing their business.

20 years ago, most Not For Profits were assessing their developments over a five to eight-year period.

Bruce developed a financial framework for aged care and retirement li