The recent announcement that a group of All Blacks including Dan Carter and Ritchie McCaw have invested in the Park Lane Retirement Village in Christchurch is just one more example of how investment in rest homes and aged care facilities is becoming recognised as a good type of investment.
With the increasing number of the baby boomer generation now making the move to retirement villages the sale of rest homes and aged care facilities is now an investment keenly sought after by many investors. The strong demand for these types of properties has resulted in many of them selling within 60 days of listing.
The businesses are normally sold as going concerns with good staff already in place and so investors see the purchase of a rest home or retirement village as a low risk investment with a good rate of return. Nowadays these properties often include an attached hospital facility with some also specialising in dementia care.
For small investors one option is to buy shares in listed companies such as Ryman Retirement Villages or Summerset retirement villages and aged care facilities however for the investor looking for a larger investment that they have more control over the outright purchase of a rest home with from 10 to 50 units is often the preferred option.
As Sue Bennett of Bennett Realty says “We have never been busier. We are being approached daily by people from within New Zealand and overseas looking to buy aged care facilities”.