Deal: Russell Kennedy Lawyers has advised the Qualitas Group on its acquisition of three retirement living villages.

Value: Confidential

Area: Aged care and retirement living

Key players: Russell Kennedy’s team was led by principals Rosemary Southgate and Solomon Miller. Assistance was provided by Kathryn Elleman, John Corcoran and Donna Rayner, and lawyers Eleanor Athanasiou and Lillian Graystone.

Deal significance: The deal sees Qualitas acquiring three north-west Melbourne retirement villages: Burnside Retirement Village, Taylors Hill Retirement Village and Keilor Retirement Village.

According to Russell Kennedy Lawyers, the acquisition illustrates to the sector investor confidence in the potential uplift in existing retirement villages.

Qualitas manages more than $2.2 billion in committed capital, a statement noted.

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The 649 dwellings encased by the deal are Qualitas’ first investment into the retirement living sector, it was reported, and is a joint venture between the real estate investment manager and retirement living operator Centennial Living.

Qualitas’ managing director of principal investments, Mark Fischer, said: “Qualitas considers the investment to be a countercyclical opportunity suitable for sophisticated private capital with the investment thesis benefitting from the well-understood, long-term demographic trends of an ageing population.”

He said the company was attracted to “the strong occupancy rates and the long-term value-add potential of the villages, being within well-established residential communities in the north-western growth corridors of Victoria”.

“The acquisition continues Qualitas’ diversification into investments that provide long-term cash flow to investors whilst supporting the fundamental human needs of the community,” Mr Fischer said.

“The retirement living sector is undergoing structural changes underpinned by favourable demographics and industry drivers.

“We see significant opportunities for these assets to deliver strong, risk-adjusted returns to investors going forward.”

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