Qualitas has entered into an agreement to acquire three retirement living villages, located in Victoria, from Stockland.

The portfolio of Burnside Retirement Village, Taylors Hill Retirement Village and Keilor Retirement Village, located in Melbourne’s north-west, is made up of 649 dwellings, housing over 900 residents. Qualitas has appointed Centennial Living to operate the villages, a group founded by Derek McMillan,  formerly CEO of  Australian Unity’s retirement and aged care business .

The transaction will be Qualitas’ first investment in the retirement living sector, said Mark Fischer, Managing Director, Principal Investments.

“Qualitas considers the investment to be a counter-cyclical opportunity suitable for sophisticated private capital with the investment thesis benefiting from the well-understood, long-term demographic trends of an ageing population.”

“Qualitas was attracted to the strong occupancy rates and the long-term value-add potential of the villages, being within well-established residential communities in the north western growth corridors of Victoria.”

“The acquisition continues Qualitas’ diversification into investments that provide long term cash flow to investors whilst supporting the fundamental human needs of the community.

“The retirement living sector is undergoing structural changes underpinned by favourable demographics and industry drivers. We see significant opportunities for these assets to deliver strong, risk-adjusted returns to investors going forward.”

Pictured L-R: Derek McMillan, Mark Fischer, Tony Connon, Centennial Living Finance Director.