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Aveo to retire from certain investments to focus on aged-care biz


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Aveo to retire from certain investments to focus on aged-care biz

Retirement communities giant Aveo Group Ltd. is planning to sell by the end of its 2019 financial year its remaining land banks, along with its office and retail assets in the Gasworks precinct in Brisbane's riverside suburb of Newstead, The Australian reported.

The planned exit is part of a strategy that will see the embattled company focus on its aged-care business, in which 87% of its holdings are invested, the paper noted. If pursued, the divestment would pave the way for the consolidation of Aveo's assets into the retirement sector by 2020.

CEO Geoff Grady told the publication that the sale is expected to increase the number of retirement units that the company develops annually to 500 from 30.

According to the Oct. 5 report, the Gasworks precinct development being flagged for sale was topped out in September. The aged care facility will feature 199 independent units, 99 beds and 4,000 square meters of communal facilities upon its completion, which is expected in mid-2018. On the same site, Aveo intends to integrate independent living with 55 assisted low-care units and aged care.

Also part of Aveo's retirement-focused strategy, which was announced in 2013, is a proposal to invest A$800 million for a share buyback and for the expansion of its retirement assets, the publication added.