Aging population presents development opportunity for $600 million joint venture

Brisbane-based alternative equity investment firm, Greenfort Capital, has entered into a joint venture with Gaw Capital Partners, an international private equity firm, to acquire and develop a pipeline of $600 million worth of retirement living projects.

The arrangement will see GreenFort grow its retirement living business, Reside Communities, to 1,500 units across Australia’s east coast. Reside Communities was established last year by GreenFort partners Adam Vaggelas and Nick Singleton (both previously from Blue Sky Alternative Investments) and Scott Hyndman.

The group spoke out regarding Australia's rapidly ageing population and lack of quality retirement living supply with Mr Vaggelas saying,

"The 65-plus age group is forecast to almost double over the next 20 years. With retirement living occupancies at 90 per cent across the country and the average retirement living facility almost 25 years old, we see a compelling opportunity to supply unmet demand for quality, well-located product."

President and managing principal of Hong Kong-based Gaw Capital Partners Kenny Gaw also sees the significant opportunity in this form of alternative development stating that Australia's retiring Baby Boomer generation offers a strong foundation from which to build the business.

The federal government's Australian Institute of Health and Welfare forecast that the portion of the population aged over 65 will increase by 7% from now to 2050, taking the total number of over-65s from 3.8 million to 8.8 million.

Reside Communities has already acquired a 5.5-hectare site in Samford Village near Brisbane, where there remains scope to develop a further 120 independent living units in addition to the 27 existing. The group has also purchased an existing 121-unit retirement facility on a 4.8-hectare site in Robertson, in Brisbane's south.