Aveo offloads South Australian villages ahead of expected $3.5 billion sale

The sale of 13 Aveo retirement villages in South Australia will see Resthaven and Eldercare – both operating under the broader UnitingCare Australia network – expand their footprints with over 1,000 units changing hands.

Brookfield, the Canadian impact investment firm that owns Aveo, is gearing up for a $3.5 billion auction for the entire business. The sale of its South Australian portfolio means the auction will focus purely on assets in the eastern states.

Key points

• Resthaven will acquire 11 villages in the sale, and Eldercare two, with the 13 retirement homes valued at $122 million
• Aveo already offloaded two other South Australian sites to separate buyers in April; five regional retirement villages went to Teman Communities in July; it is still negotiating a sale for two Tasmanian villages in Launceston and Hobart
• All residents will retain their places with current contract terms to remain intact, while staff are expected to seamlessly transfer ownership 

Resthaven, which already operates 20 retirement villages in South Australia, will more than double its reach as a result of the acquisition. The organisation will manage more than 1,200 retirement villages. 

“In this collaborative bid, Resthaven will acquire 799 units across eleven villages with Eldercare acquiring the remaining 234 units over two villages. We are delighted to work in partnership with another UnitingCare agency in Eldercare,” Resthaven CEO, Darren Birbeck, said. 

“The acquisition will increase Resthaven’s retirement living portfolio substantially, adding to our suite of options for older people. The acquisition complements Resthaven’s strategy of planned and considered growth.”

An additional 90 home care clients will also see their services switch from Aveo to Resthaven. 

Eldercare, meanwhile, brings two more sites into its portfolio, increasing the total to 14. CEO Jane Pickering said the acquisition provides certainty to staff and residents after months of negotiation.

“This partnership demonstrates the respect and commitment from two values driven organisations that provide exceptional services to the South Australian community,” she said.

“‘With the addition of Carisfield in Seaton and The Braes in Reynella, Eldercare’s Retirement Living portfolio will expand in two new areas that are located close to existing Eldercare Residential Aged Care Homes.”

Mr Birbeck was equally reassuring when it came to residents and staff, sharing that he expects the transition of ownership to run smoothly ahead of the official November 1 change.

“Over the next few months, we will work together to answer any questions the Aveo residents may have about the sale,” he added.

Aveo CEO Tony Randello said the transition process will begin immediately as the organisation ramps up for a busy period with the incoming auction of its East Coast portfolio. The sale of its South Australian and Tasmanian homes is expected to make Aveo a more attractive purchase for existing providers or a potential new party. 

Brookfield purchased Aveo in 2019 for $1.3 billion ($2 billion including debt).