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Australian Unity launches unlisted property fund
Australian Unity has launched a new institutional retirement village property fund in light of increasing demand and growth in the retirement community sector, it stated.
Australian Unity stated that the Australian Unity Retirement Village Property Fund would buy well-established retirement villages that meet strict criteria established by both Australian Unity Investments’ property portfolio managers and Australian Unity Retirement Living, and the fund would seek to provide returns of four percent over the benchmark of rolling ten-year Australian government bond yields, based on a total investment return after fees.
It stated that typically up to 50 per cent of the return would come from income from the retirement villages, with the remaining 50 per cent generated by long-term capital appreciation of the properties.
Head of Australian Unity Investments David Bryant said studies have revealed a growing interest by older Australians in retirement villages.
“A recent report predicted that by 2016, 6 per cent of Australians over 65 will live in retirement villages, up from five percent in 2009, and increasing to 7.2 percent by 2026,” he stated, referring to Colliers International market indicators report released in 2009.
“Coupled with the rapidly ageing population in Australia, this means that demand for retirement communities will grow significantly over the medium to long term, which will support the value of our portfolio.”
Australian Unity stated that the fund would be a stapled security made up of two trusts, the Retirement Village Property Trust and the Retirement Village Operating Trust.
AUTHOR
Mike Taylor
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