Invesco Buying Australia Retirement Village Group From New Zealanders for $551M

Invesco has agreed to acquire a developer of retirement villages in Australia for A$845 million ($551.3 million), as the US asset manager continues to make bets on Asia Pacific senior living.

Invesco’s real estate arm will purchase RetireAustralia from a 50:50 joint venture of the New Zealand Superannuation Fund and Wellington-based fund manager Infratil, according to a Friday announcement. Headquartered in Brisbane, RetireAustralia builds, owns and operates senior living villages across Queensland, New South Wales and South Australia.

The transaction is set to expand Invesco’s presence in Australia’s fast-growing senior living sector after the NYSE-listed firm joined forces with Sydney-based builder Stockland last year to develop and hold an initial portfolio of three land lease community assets.

“The country’s ageing population, coupled with their rising wealth, is driving demand for alternative aged care solutions, and RetireAustralia’s care-centric operating model is well positioned to meet this need,” said Calvin Chou, head of Asia Pacific at Invesco Real Estate.

Serving Seasoned Citizens

RetireAustralia owns and operates 29 senior living villages with over 4,300 independent living units and serviced and care apartments. The company’s development pipeline has the potential to deliver a further 800 units across seven projects nationwide.

CEO Brett Robinson said RetireAustralia was attracted to Invesco’s track record of senior living investments in the US, Australia and South Korea, where earlier this year the US firm acquired a three-asset portfolio under a joint venture with Seoul-based senior care specialist Caredoc.

“By working together, I believe we will create thriving communities where more older Australians can live and age well, meeting the country’s growing need for high-quality seniors housing and care as we address evolving demographics,” Robinson said.

The deal remains subject to regulatory approval and is expected to close in the fourth quarter of 2025. Australia’s senior living sector is nearly four times the size of the student housing market and 10 times as large as the build-to-rent segments, according to CBRE, with a low level of institutional ownership offering significant consolidation potential.

“Transaction activity in the sector is vibrant, with at least nine +A$100 million deals in villages and six A$100 million deals in aged care since 2021,” the consultancy said in a report. “In a similar vein, retirement villages are trading at some of the largest discounts to homes in close proximity, providing fruitful opportunities for incoming investors.”

Morrison Unit’s Exit Loss

The New Zealand Superannuation Fund and NZX-listed Infratil, a unit of infrastructure manager Morrison, acquired their respective half-stakes in RetireAustralia in 2014. In a Friday statement, Will Goodwin, co-chief investment officer of the NZ$85 billion ($50.7 billion) Super Fund, called RetireAustralia “a quality business, with strong leadership, contributing positively to Australia’s aged care industry.”

At the end of March, the carrying value of Infratil’s investment in RetireAustralia was NZ$404 million, with the transaction expected to result in an accounting loss on sale of NZ$80 million, per a stock filing. Infratil said the exit was part of the company’s strategy to divest businesses unlikely to scale under its ownership.

“Since Infratil’s initial investment in 2014, RetireAustralia has undergone significant change, including the appointment of new leadership, a refreshed strategy, and a strengthened development pipeline,” said Infratil CEO Jason Boyes. “Unfortunately, over the same period, the sector has faced a number of challenges, which have contributed to us not being able to fully realise our ambitions for the RetireAustralia business.”