‘Boomers Have Disrupted Everything’: Levande’s $1.5bn Pivot

When Stockland carved off its 58 retirement villages in 2022, Swedish private investment firm EQT was happy to pay $1 billion for the portfolio . But just two years later, the company formed from that deal—Levande—was able to secure a $1.5-billion debt facility at a loan-to-value ratio of 50 per cent, with the funds directed towards increasing its development pipeline . On the back of seven starts or completions in the space of just weeks in early 2026, Levande chief executive Kevin McCoy says deep pockets are helping build a diverse asset base— one that can withstand the chaos the boomers are about to unleash . “The baby boomers have disrupted everything on their journey through the country, the decades and the economy. And I think they will also disrupt our industry in some way, shape or form,” McCoy says. “These things are pretty gradual. They don’t just turn up, not overnight. But what we’re seeing out of baby boomers is that they want three things. “They want choice, control and agency. They want a space to live, not just to stay. And the other thing is, they want status. “So that means flexible services, simple contracts, and assurance of ongoing support… High design standards, layouts that support aging in place. And they want to be moving to a place that their friends think is pretty good.” ▲ Residents at Levande’s The Cambridge have access to a private cinema. The combination of those changing demands is overhauling the sector from every angle, McCoy says. “It’s influencing locations. It’s influencing contract types. It’s influencing products, it’s influencing the design of the built form,” he says. “Typically, this industry ran on a fee which was deferred. Now we’re finding 30 per cent of our consumers are looking to pay that fee upfront. “And they’re looking for larger product. Typically, if you go back 10 or 15 years ago, retirees were in one-bedroom, two-bedroom units. Now it’s two-bedroom plus a study, or three-bedroom.” ▲ Typologies at the Cambridge project were re-thought mid-build. McCoy points to the example of Levande’s highrise Cambridge development, in Sydney’s Epping, which originally targeted 172 units in 28 storeys. A mid-build pivot meant the project completed with 158 apartments, but marketed more successfully. “The original design had 13 three-bedders ... we were at level 17 and we’d already pre-sold all the three-bedders. “So the sales team said, ‘We’ve got a problem. We’ve got too many two-bedders’. “We took the risk, and we went back to the builder Richard Crookes, the Parramatta council and the architect, and said, ‘We’re starting from level 20 again. We’re gooing to build 41 three-bedders overall, and we’re getting rid of all the two-bedders’. “And they went ‘WTF’. But we did it and we pulled it off, and we’ve sold all those three-bedders ... we’ve still got two-bedders left.” Funders support build-and-revamp model McCoy said that Levande’s strategy, targeting a pipeline of about 350 homes completed per year in a mix of greenfield and infill sites, across different markets, is “a sensible way to get organised”. “I think we’re probably one of the more ambitious retirement living developers out there…we’ve gradually added to the portfolio. We also mix new land with what can we do across our existing portfolio,” he says. “You’ve got to the balance right. You can have an ambitious development plan, but you’ve got to respect your existing portfolio as well. Because that supports the valuation of the business, the brand, the reputation, the residents, the future sales. “We’re very mindful of how we invest in both appropriately.” The private equity ownership structure allowed Levande to work with a syndicate of 13 banks, including Australia’s big four, in raising its debt (with a five-year term). A corporate ownership structure, according to McCoy, may not have been able to support that approach to raising capital and expanding development. ▲ Levande broke ground on a project at NSW’s Oatlands Golf Course in March. “If you didn’t have that capability, you’d be building one and financing it, and then getting a stage done, and doing it little bit by little bit. So it’s definitely given us a bit more flexibility to be more expansive. With a 50 per cent LVR, “it’s not like we’re geared to the hilt. It’s quite conservative, really”. “You should get to a point where you get a kind of a rhythm and a cadence around [development], where your big debt doesn’t really change. You run a couple of projects, you sell them down, you run a couple of projects, you sell them down,” McCoy says. “Now you could grow more debt, as you put more product into the market, and as your existing business does well. That’s why it’s so important you make sure your existing portfolio is really humming.” “Picky” about land deals While the portfolio, pipeline, and land acquisitions are deliberately spread out across the country, McCoy says that “to be honest, we’re probably not going to do anything in New South Wales anymore”. “Because we’re owned by a foreign entity, we get a 9 per cent stamp duty surcharge. So we’ve stopped kind of looking at land in New South Wales. “Just thinking of risks and how we put a portfolio together, I’m not sure I’d run two developments in Brisbane at the same time. Certainly Victoria, South Australia—it’s hard to find land, but if you’ve got any suggestions, we’re open to it, While admitting Levande is “picky” about land deals, McCoy says that he’s been surprised how difficult is has been to find appropriate sites. “The other thing we’re conscious of is, without naming names, some councils, it’s just not worth trying to build there,” he says. ▲ Land for a 206-unit project at Bulimba in Brisbane was acquired in January. Parramatta and Glen Eira have been particularly supportive, while other councils have proven “problematic” enough that Levande will not acquire in their jurisdiction. And while retirement villages are increasingly co-located or integrated with other living sectors , McCoy says that Levande is not looking to spread that thin. Nor is it seeking to formalise uplift by integrating affordable components or other state pathways. “On one level retirement living is just, to a certain extent, affordable housing. When you compare it to the median house price in a particular locale, it’s typically 60 or 65 per cent below the median house price,” McCoy says. “But it’s not really an investment, it’s a lifestyle. It’s more of a living product; you’re moving in to be part of a community. There’s security, lock-and-go. You know who your neighbors are, you don’t have an Airbnb next to you. “If you just want an apartment as an investment, then you just should go buy one. Because retirement living is about being in a village and being part of a village.” Granny flats a second-best option While the boomers—the original counterculture kids—may have a bit more revolution left in them, McCoy doesn’t think it extends to abandoning retirement living altogether . “I think what’s probably driving a lot of the return to intergenerational living is just housing shortages and the cost of housing… Some would argue we were all better off when we had three generations in one house, but the genies out of the bottle and all that,” McCoy says. “Granny flat” is now the most-searched feature on Domain and the Housing Industry Association projects a 1000 per cent increase in builds this year, compared to 2022. ▲ Granny flat activity is expected to be particularly pronounced in Perth and Sydney, according to Domain. But McCoy questions their value for retirees, asking “who does it make feel better the most: the person moving into the granny flat, or everyone else so they can feel they’ve done the right thing?”. “When I think of granny flats: isolation is one of the biggest problems in aged care, and it’s one of the biggest causes of health issues in senior living, and I think granny flats really contributes to that, because most of the time you’re still on your own,” he says. “I think you’re better off moving into a retirement village where you’ve got a sewing club, a bowls club, a potting shed, there’s billiards on a Tuesday, there’s darts on a Wednesday. There’s all different activities that you want to go to, and which really contribute to your wellbeing. “You’re living longer and that period of your life can be fantastic, rather than being stuck in a granny flat.”

‘Boomers Have Disrupted Everything’: Levande’s $1.5bn Pivot

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