Obtaining a true indication of what sales and values mean in the retirement village market is not always easy.
Lend Lease has released its 2011/12 performance figures across all areas of their business including retirement, revealing an increase of 22% over the period.
Digging deep into their results shows what the country’s largest village operator achieved in the past 12 months and provides a benchmark for all operators.
Following the purchase of Little Bay in Sydney from St Lukes, they have increased their number of retirement villages over the past 12 months. Lend Lease now operate 71 villages and a total of 12,606 ILUs.
All up they sold 1,007 ILUs over the 12 month period, or 8% of their stock. That’s in line with an industry average for mature villages of 9% p.a. turnover, equating to 84 ILUs per month or 19 per week.
It also equates to 1.18 ILUs per village per month, which is above the 0.8 sales figure which many operators report as the current average.
In the crucial resales area they grew their turnover by 15% and more importantly, they grew the value of total resales by 22% to $266 million.
In a flat market this is a remarkable achievement.
Not only does it benefit Lend Lease, but also the departing resident, their families and all existing residents who will see their home value being maintained or enhanced.
