FKP & Macquarie launch into retirement

FKP and Macquarie Group have launched a new $850 million unlisted property fund investing in retirement villages in Australia and New Zealand.

The Retirement Villages Group fund will be the second largest retirement village owner in Australia and New Zealand and will hold an estimated 5% market share.

RVG’s portfolio includes 36 mature villages with over 4,400 units under management and a pipeline of over 550 units to be developed over the next five years.

RVG’s chief executive Patrick McClure was delighted with the successful establishment of the fund.

“We have found that the underlying themes in the retirement village sector present a compelling investment opportunity. Our population is aging and we believe this will underpin future demand for retirement villages in both Australia and New Zealand. In addition, we have identified that there is a limited supply of established high quality villages in metropolitan markets.

“The fund’s prospects will be underpinned by organic growth in its existing portfolio, the current development pipeline of units and potential acquisition and development opportunities arising through FKP and Macquarie Capital’s expertise in sourcing attractive investment opportunities,” he added.

FKP’s managing director Peter Brown said FKP and Macquarie’s joint move into funds management is an exciting evolution of the relationship and further strengthens FKP’s funds management platform which now exceeds $1.6 billion.

FKP retains 26% and Macquarie a 12% interest in RVG and the parties have committed to holding a minimum stake in the fund of 15% and 5% respectively.

Macquarie and FKP began working together in the retirement villages sector in September 2005.

RVG will be jointly managed by FKP, which is Australia’s largest retirement village owner and operator and Macquarie Capital.

Australian Property Journal