AVEO LAND ACQUISITION WORTH $380M
Written on the 23 May 2014
AVEO Group (ASX:AOG) has acquired two retirement sites with an expected end value of $380 million, as the company continues to build its retirement portfolio.
Aveo purchased approximately 14.4 hectares of land at Northwest Business Park and Sanctuary Cove for a total of $53.6 million.
The announcement follows the completion of unloading its 50 per cent stake in the MFKP joint venture to Mulpha Group for $56 million.
CEO Geoff Grady (pictured) says the purchase was a major coup for the company’s slim-down to become a purely retirement group.
“Aveo has a range of sites within our broader residential portfolio that, like these sites, are appropriate for new retirement developments.
“We will continue to develop these sites as we move towards our target of delivering 200 new retirement units annually by FY16, extending to 500 new retirement units annually by FY18,” he says.
The sites will be developed into two major retirement villages, expected to accommodate 1000 residents and completed in 2017.
Advanced discussions with aged care operators are underway for the Northwest site, to include both low and high levels of care, including dementia care.