Living Well

AUSTRALIAN PROPERTY INSIGHTS

LIVING WELL

Aveo Forest Grove Retirement Living, QLD

OPERATOR LANDSCAPE: STILL FRAGMENTED, BUT SHIFTING Despite some high-profile names, Australia’s Retirement Living sector remains highly fragmented, with more than 700 operators managing over 230,000 units nationally. Institutional players account for a growing share of new supply, but the legacy stock is still dominated by not-for-profits and small private operators, many of which manage only one or two villages. The sector’s structure can broadly be broken into three groups: • Major Institutionally backed platforms - Keyton, Levande, Aveo, Retire Australia. • Private owners - these include sophisticated midscale owners (e.g. Centennial), long-term family owners and private managers with 1-3 villages. • Not-for-profit groups, including Uniting, Baptcare and Churches of Christ, which hold a sizeable share of the sector, particularly in regional locations and lower-income catchments. Consolidation is emerging – particularly via institutional partnerships and private equity-backed platforms and there is plenty of opportunity for more M&A in the sector. Large scale, well managed platforms will bring more consistent service delivery, consumer experience and economies of scale, benefiting operators and occupiers. Alongside the opportunity for M&A, the sector’s underlying fundamentals and capital-light nature remain a major drawcard, particularly as long-term investors seek stable, ESG-aligned income streams and demographic-backed platform growth.

CHART 2

AUSTRALIAN RETIREMENT OPERATOR MARKET SHARE

Aveo

Levande

Keyton

Retire Australia

86%

Rest of Market

- Midscale owners (<10 villages) - Long-term family owners - - Not-for-profits Private managers 1-3 villages

Source: Cushman & Wakefield Research

CUSHMAN & WAKEFIELD