Development Finance
Retirement Village and Aged Care Acquisition
Retirement village and aged care acquisition financing supports developers or investors in purchasing, developing, or expanding facilities catering to seniors. This specialised funding aligns with the growing demand for quality aged care and retirement living solutions.
Funding for Acquisition and or Refinance is usually delivered on an average of 65% of the following value categories:
Going Concern Owners Interest Value;
The In One line Value of Unsold Stock (ILU`s); and
RACF net of Refundable Accommodation Deposits (RAD) liabilities.
Development Funding
Funding in the range of 65-70% of the “as is” land values not exceeding 65% of the Staged Gross Realisation and Residual Land Value.
Conditions
A level of pre commitment for development in the range of 50% would be required normally in the form of $1-10,000 deposits;
Due diligence on operators , licenses etc;
Ongoing management of interest cover , LVR covenants;
Ongoing monitoring of Liquidity covenants; and
Ongoing Management of DMF registers.
Pricing
Banks: Interest Margin of 1-1.5% p.a. , Line fee of 1.25-1.5% p.a.
Non Bank: Approx. 1 % higher than Bank Funding.
*Please note that the loan parameters should be treated as a guide only and each individual loan is assessed on its own merit.
Key Features of Retirement Village and Aged Care Acquisition Finance:
Tailored Loan Structures: Financing options are customized based on the asset type, location, and business model (e.g., independent living units or aged care services).
Long-Term Financing: Loans often come with extended terms to reflect the operational stability and long-term nature of the sector.
High Loan-to-Value Ratios (LVR): Competitive LVRs are available, particularly for established facilities with strong occupancy rates.
Deferred Management Fee (DMF) Consideration: Financing may account for the unique cash flow from DMF models in retirement villages.
Growth Capital: Funds can be used for acquisitions, upgrades, or facility expansions to meet compliance and market demands.