Ryman Buys Aged Care Site from Steller for $28.5m

Aged care operator Ryman has purchased a significant permit-approved site from Steller for $28.5 million, as the group continues its sell down of assets.

The large 32-40 Graham Street site, has plans for a retirement village for 90-residential apartments, a 122-bed aged care facility and 15-assisted living units in Highett, 16 kilometres from Melbourne CBD.

The 11,981sq m land-holding was sold by Savills agents Julian Heatherich, Benson Zhou and Jesse Radisich following a competitive selling process.

Steller Group, which at its peak oversaw a $4.2 billion project pipeline across Melbourne, collapsed into receivership in July.

Steller initially purchased the 32-40 Graham Street site for around $20 million in 2016.

Heatherich said the site had attracted multiple bids from aged care and retirement providers.

“Securing sites of this scale in these areas is becoming increasingly difficult,” he said.

“The site is only 16 kilometres from the Melbourne CBD, and buyers are of course extremely drawn to that.”

“The Bayside area is one of Melbourne’s most highly sought inner suburban locations due to its abundance of lifestyle amenity, thriving café and culinary culture and public transportation links,” Heatherich said.

“The sale also indicates a continuing upward trend we’re seeing in aged care developments, particularly in inner Melbourne and the Mornington Peninsula,” he said.

The sale to Ryman Healthcare, a New Zealand retirement village and rest home operator founded by John Ryder and Kevin Hickman in 1984, follows another recent off-market acquisition to Ryman in Ringwood brokered by Savills.

Ryman, listed on the New Zealand Stock Exchange, has 31 operational villages across New Zealand and is developing another five villages in Victoria.