Stockland has acquired 980 village homes across eight villages in South Australia from the not for profit operator Masonic Homes.
Stockland also wins in the deal a development pipeline of 130 home sites.
Seven of the eight villages are within 20kl of Adelaide; the eighth is at Victor Harbour, a popular retirement destination.
The portfolio is generating a Return On Assets above 7.5%, the rate that Stockland is aiming to achieve by FY19 for its overall portfolio.
This is a 180 degree change in strategic direction for Masonic Homes. In April 2012 they sold their four aged care facilities to ECH for $60M so that they could concentrate on becoming a national retirement village player. They stated that they would invest $200M over the next five years both acquiring and developing villages. This sale ends this ambition.
Interestingly ECH in March last year then sold all its aged care facilities so it could concentrate on seniors housing and in particular retirement villages.
Stockland will now have 9,500 village homes across 69 villages nationally.
