Yesterday Aveo announced agreement to be purchased by the huge Canadian investment fund Brookfield. This is good news for retirement village operators – and managers.
There are many reasons.
It is a $1.3 billion vote of confidence in retirement villages by a conservative investor that is looking at the long-term health of retirement villages. This gives all operators – and regulators – confidence.
Brookfield would only buy it if it believed it can add value to their investment. They will do this by reinvesting in older villages, making them suitable to the more demanding new customers (i.e. baby boomers).
This is great for existing residents, plus the local communities where the money will be spent with local suppliers.
Brookfield will also invest in quality staff – which means training and reward for professionalism. Village managers will be in demand and a career path will evolve.
Brookfield will also want to make sure village homes sell fast and at a good price. They have the money and they will invest in marketing. All retirement villages will benefit.
It will take 12 to 24 months for all this to roll out, but it is ‘good news’.