What is the total value of the deal?
Infratil and the NZ Superannuation Fund have executed a binding contract to sell RetireAustralia.
With this transaction, the entire shareholding in the company will be acquired by Invesco Real Estate for A$845 million.
Way back in December 2014, a joint ownership arrangement had been established and now ends.
Holding 28 retirement villages across NSW, Queensland, and South Australia, RetireAustralia is one of the largest operators of retirement villages. It also holds a development pipeline of more than 500 future villas and apartments.
How much will Infratil receive?
Infratil holds 50 per cent of the shares in RetireAustralia.The company will be expecting proceeds of approximately A$300 million (NZ$328 million).
The exact amount will be subject to adjustments for transaction costs and other completion items. Sale proceeds represent a significant uplift from Infratil’s initial investment of A$215 million in 2014.
However, the investment had a carrying value of NZ$404 million as at 31 March 2025. Consequently, in accounting terms, a loss of circa NZ$80 million will result from the sale.
Why has Infratil chosen to divest now?
According to Infratil Chief Executive Jason Boyes, RetireAustralia was a quality business under great leadership.
But there had been ongoing challenges that prevented the company from fully realising its growth ambitions.
He added that in 2014, Infratil’s market capitalization was $1.6 billion and by 2025, it would have surpassed $11 billion.
Because of this growth, smaller assets have become less meaningful for shareholder value.
Proceeds from the sale will enable capital redeployment in sectors with greater growth potential, including data centres, renewable energy, and digital infrastructure.
Infratil Chief Executive Jason Boyes
What does the sale mean for the retirement sector?
The sale is subject to certain regulatory and contractual parameters. Such approval is to be sought from the Australian Foreign Investment Review Board.
The eventual closing is slated for the fourth quarter of 2025. RetireAustralia is the fifth-largest operator of retirement villages in the country.
It must have strong C-suite expertise handling independent living units and aged care facilities for cash flow generation.
These portfolios emphasise stable cash flows backed by demographic trends of an ageing population.
Invesco Real Estate has real estate assets worldwide in excess of US$40 billion, including considerable holdings in Australia.
The acquisition falls under its resilient asset-class expansion strategy. Invesco has further plans to enhance returns on both active and passive fronts.
How will investors react?
Market analysts say there is strong demand for high-quality retirement living assets, which this transaction furthers. The transaction is recorded as a loss on sale by Infratil, although from a liquidity point of view it is positive for its development pipeline.
The exit from NZ Super Fund reflects that particular investor’s need to account for its infrastructure portfolio.For investors, the sale indeed stands as further confirmation that Australia’s retirement living sector remains very attractive to them.
The long-term growth is envisioned to be supported by ageing demographics, increased housing equity by seniors, and demand for lifestyle-based retirement communities.
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Final Thoughts: Strategic Capital Shift for Future Growth
Exiting RetireAustralia represents a landmark change for the two organisations, Infratil and NZ Super Fund. By parting with a more stable yet slower-growing asset, both organisations have significant capital freed up for reinvestment.
Infratil therefore can now focus its attention on sectors with higher growth trajectories and global scalability.Invesco Real Estate sees this acquisition as a strategic entry into a resilient and growing market.
The ageing population in Australia and steady demand for retirement living make for a very sound long-term opportunity.
While the sale registers as an accounting loss for Infratil, it enables the company to fund future opportunities in supply-demand infrastructure and technology markets.
