Aveo Group, Australia’s largest retirement living provider, has responded to an article in The SOURCE, entitled “Interlocutory injunction granted against Aveo over $1B Springfield development” published on 11 July.
“At all times, Aveo has met all of its contractual obligations in relation to the Springfield development,” an Aveo Group spokesperson said:
The spokesperson said that, to date, Aveo had built 152 apartments and that despite sustained and significant marketing activity and recent price reductions, only about one third (55 apartments) were occupied, with the balance vacant and available for sale.
“This reflects a number of factors, particularly the challenging market conditions for apartment products within the Springfield master planned community,” the spokesperson said. “Sales have been affected by slow development of sites around the retirement village, with Springfield's Health City precinct also less advanced than Aveo had anticipated.”
The spokesperson said Aveo remained fully committed to developing Springfield as a master planned retirement village.
“However, Aveo's current three-year business plan, submitted as required under the Development Deed, reflects the current market reality,” they said.
“It anticipates no new apartment construction until market conditions improve in the catchment and the Springfield development matures.
“Springfield has declined Aveo's realistic business plan and has sought a court injunction rather than engage with the agreed dispute resolution process agreed in the Development Deed.”
The matter was adjourned by the Queensland Supreme Court for review no earlier than July 31.
The SOURCE: Aveo committed to Springfield as early as 2017. Since then the local market around Springfield has not developed as predicted.
