The Brookfield-owned business owns and operates 65 retirement villages with 27 in Queensland, 15 in NSW and 23 in Victoria, according to the sale flyer from Morgan Stanley and Barrenjoey and which assumes its existing two sites in Tasmania will be sold.
Aveo is being sold as a 3.4 million square-metre portfolio of 10,000-plus units in premium locations across the East Coast, with more than 3,000 units in its pipeline in the 19-page sale flyer.
The operator has already divested its retirement villages in South Australia, with 13 bought for $122 million by Not For Profit UnitingCare Australia's Resthaven and Eldercare.
Interested parties are being told Aveo is the second-largest provider in the sector behind Keyton, formerly Lendlease Retirement Living, with a 6% market share. The group operates with a $1.6 million average median house price, higher than its competitors, and has a 94% independent living unit occupancy rate, the flyer states.
The sales pitch adds that Aveo’s portfolio generates bond-like and predictable yearly cash flows with 10,000 residents generating 1,000 sales annually. The Weekly SOURCE reported in November last year Aveo was set for its third successive sales record.
According to the flyer, around 65% of Aveo’s residents are female with an average entry age of 78. Its flagship village is Manors of Mosman with 154 units and a $5.4 million median house price.
Aveo says changes made to its contracts, providing more simplicity, choice and certainty, have led to record sales with annual sales volumes of 1,504 in calendar year 2022.
A sale flyer is typically seen as the launch point for an auction, but sources say Brookfield is telling parties to think of it as investor education and a precursor to kicking off a formal sale process.
