It makes intuitive sense that superannuation funds, which are firmly in the retirement business, should look to invest in the villages and nursing homes which their growing legions of ageing members will require. They generally have not until now, but that may change as an array of institutionally-focussed products gain a track record. CATHERINE JAMES reports.
But one growing demand of the over-65ers that is already apparent – and is only expected to increase – is more accommodation options. Whether it’s retirement village housing or nursing homes, demand is outstripping supply in
Macquarie Capital and FKP began buying retirement living businesses in late 2005, starting with an 82 per cent stake in NZ’s largest operator Metlife Care. Four 100 per cent buyouts in NZ and
The latest estimate of funds under management is $1 billion, and performance is pitched at “low double digit” returns for a 10 year investment, according to RVG chief executive Patrick McClure. The portfolio holds only retirement villages, unlike some of the other “community funds” in the market with a mix of retirement village, nursing home and aged care services on their books. RVG does have some exposure to “aged care units” in NZ, but this is only around 1 per cent of the total portfolio value.