Brookfield Asset Management, an alternative asset manager headquartered in New York with over US$1 trillion of assets under management, has agreed to sell its retirement living platform Aveo to The Living Company for A$3.85 billion ( US$2.51 billion ) in what it says will be the largest-ever direct real estate transaction in Australia.

Since acquiring Aveo in 2019, Brookfield says it has transformed Aveo into Australia’s premier retirement living platform, achieving near-full occupancy and an industry-leading resident satisfaction score.

It has undertaken strategic initiatives, including simplifying Aveo’s customer contracts to provide residents with greater choice, certainty and peace of mind, and investing more than A$500 million across the business to create a premium community experience for retirees, the company says.

 Aveo owns a portfolio of more than 10,000 units in premier metropolitan suburbs across the eastern seaboard of Australia. Working alongside the Retirement Living Council and other industry peers, Aveo has been instrumental in advocating for higher standards and consumer protections across the retirement living industry, Brookfield says. 

Lowell Baron, Brookfield Real Estate CEO, comments: “Aveo is a prime example of the operations-led turnaround investing that we excel at. Working with the Aveo team, we leveraged our operating expertise to significantly transform the business, improving the resident experience and creating vibrant communities, all of which have led to record sales and occupancy levels. Given the favourable market dynamics that underpin the continued growth of the living sector, we will look to invest further capital in living across Asia-Pacific.”