Brookfield's Historic A$3.85 Billion Sale of Aveo Dominates Real Estate Market

2025-06-27 companies

Sydney, Friday, 27 June 2025.
In an unprecedented move, Brookfield sold its retirement living platform, Aveo, to The Living Company for A$3.85 billion, marking Australia’s largest direct real estate transaction and highlighting the booming senior housing sector.

A Landmark Transaction in Real Estate

Brookfield Asset Management, a prominent global asset manager, has completed the sale of its Australian retirement village operator, Aveo, to The Living Company, previously known as Scape Australia, for a staggering A$3.85 billion. This monumental transaction stands as Australia’s largest direct real estate deal to date, significantly surpassing previous records and emphasizing the rising importance of the senior housing market amid an aging global population [1][2][3][4].

Strategic Moves and Market Implications

Brookfield acquired Aveo in 2019 for A$1.3 billion, subsequently investing an additional A$500 million to transform it into a high-performance, resident-first organization. This turnaround strategy resulted in improved occupancy rates from 41% to 94% and increased median home prices to A$1.6 million [3][5][7]. The decision to sell represents a strategic repositioning as Brookfield refocuses its global asset portfolio, capitalizing on favorable market conditions and gaining A$2.05 billion in value appreciation since its initial purchase [7].

The Living Company’s Expanding Vision

The acquisition allows The Living Company to diversify its housing offerings, extending beyond student accommodations into senior living. With plans to expand Aveo’s portfolio from its current 10,000 units to 100,000 units by 2030, The Living Company aims to tap into the projected demographic boom as Australia’s population aged 65 and over is expected to double by 2050 [5][6]. This strategic purchase positions The Living Company at the forefront of the rapidly expanding senior living sector in Australia [6].

The Broader Economic Context

This transaction reflects the growing investment interest in retirement living assets, driven by demographic trends and the increasing institutionalization of aged care facilities. Financial experts note that the move not only signals a significant shift in Brookfield’s strategic priorities but also highlights the vibrant investment potential within the senior housing sector, particularly as aging populations in regions like Asia Pacific continue to rise [4][8].

Sources

real estate retirement living