Heavyweight new retirement living group picks up landmark site
Keyton, formerly known as Lendlease Retirement Living, has bought a prominent, part heritage protected 1970s office and laboratory with plans for a high-end village.
The ex-Australian Road Research Board headquarters on 2.58 hectares at 490-500 Burwood Highway, Vermont South, is speculated to be setting the group back about $30 million excluding GST.
The seller, an Asia based syndicate, outlaid $28.5m in May, 2017 – near a local real estate cycle peak.
The holding was listed for sale two years later unsuccessfully.
The latest deal was brokered off-market.
Vermont South is 26 kilometres east of Melbourne’s CBD.
Preservation, reuse of Post War Modernist buildings
Built from 1971 for the ARRB, the Vermont South site’s Administration building, penned by Mockridge Stahle & Mitchell, is heritage protected.
Rising two and three storeys, Leighton Contractors won an award to build it, at a then $1m cost.
They were located to allow for future buildings, including a theatre, which never came.
An extension to the east took place in 1974, along with a tennis court.
Research wings opened the year later and in 1986; along with other improvements, there are now a total 13 buildings.
In the 1990s, the ARRB divested four hectares to the east and south; this now accommodates the Australian Unity Victoria Grange retirement village.
After offloading the balance office and laboratory with vacant possession six years ago, the group relocated to a Port Melbourne headquarters.
Maiden deal
Keyton, established last June as an independent business from LRL, is owned by Lendlease, APG Asset Management and Aware Super.
The Vermont South site is its first acquisition since the rebrand.
“This is an exciting milestone…as we pursue our growth strategy both here in Victoria and across Australia,” chief executive officer, Nathan Cockerill, said (story continues below).
Colleague, head of development, Jason Fitzgerald, added the block has the attributes for a connected retirement living community, near retail, transport and infrastructure, and with Dandenong Ranges views.
“Our vision will deliver high quality, purpose-built seniors’ residences for sustainable low-cost living within a…supportive community environment” according to the executive.
Retirement living a solution to housing affordability: Keyton
Keyton will renovate the Administration building – set to be the “centrepiece” of the village.
The project will also have a positive impact on housing supply, according to Mr Cockerill.
“Housing affordability, as a product of constrained supply, is a national issue dominating current public debate,” he said.
“The federal government recognised that retirement living communities can help ease this problem in its recent decision to include retirement living units in its national target for 1.2 million hew homes over the next five years,” the executive added.
“Incentivising the states under this program opens the opportunity for retirement living development like this project in Vermont South to be part of the much-needed solution to the national housing crisis.
“A new retirement living community provides affordable housing options for seniors and frees up existing supply in the wider housing market as those seniors ‘right size’.
“The development of more independent living retirement communities is a key part of the housing solution.
“We also know these communities deliver broader health and wellbeing benefits to residents that reduce demand on aged care and services.
“The benefits of retirement living are many and varied but to put it plainly, as a sector we provide more, high quality homes for senior Australians and we help them stay healthier longer and reduce demand on our health and aged care sectors.
“And all of this means savings to the taxpayer”.
Keyton owns more than 75 Australian villages housing over 17,000 residents.
Elsewhere in Melbourne it is developing a high rise, high density village, Ardency, on part of the ex-GTV Nine studio, in Bendigo Street, Richmond.
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