In his WA Property Council Retirement Living Conference presentation yesterday Ernst & Young partner Marcus Willison stated that three major deals “that will support the sector” will take place in the next month. Given his absolute assurance that RetireAustralia will get its IPO, one assumes this will be one.

His message was that the retirement village sector was the “next big thing” for wholesale investors; Aveo’s positive results coupled with some big deals will seal this. The “play” will be consolidation – buying existing villages to build a portfolio. Brownfield, metro villages will be in demand – not regional. Older villages are OK if they can be “repositioned” as a product.

He reports that some banks are returning to the sector and are even talking of funding of 60-65% Loan to Value Ratios (LVR’s) – not seen since 2008.

Interestingly he also predicts that Not For Profits will become core to the sector, as “both players and purchasers”.