Pacific Retirement Estates Limited

Pacific Retirement Estates (PRE) is an Australian company capitalising on the burgeoning senior living market. With a proven track record and a unique twin-business model, PRE offers investors exposure to a resilient and growing industry.

PRE's strategy is focused on:

1. Acquiring cheap, coastal land in rural areas of Queensland.
2. Constructing high quality, standardised villas on the land through controlled in-house construction. New residents fund the construction of their villa.
3. Issuing 99 year leases to residents; and
4. Funding the maintenance and operation of the retirement village through resident fees.

This strategy leverages the strong demographic tailwind of an ageing Queensland population, combined with rising interstate migration. Interstate retirees are drawn to Queensland for its affordable retirement living, sunny climate, and strong accessibility to health and recreational services.

PRE obtains profit from its development activities, the resale of the villas, and the ongoing operation of each retirement village. This provides a diverse and reliable income source. Propelled by the demographic tailwind, PRE is positioned to increase its economies of scale and achieve high speed-to-market to generate significant cashflow, offering a valuable opportunity to shareholders.

"Call for thousands more retirement living dwellings to ease housing crisis."

The Advertiser, 19 Feb. 2024

"Calls for more retirement homes as population ages."

ABC News, 5 March 2024

"Retirement communities could ease housing shortages while improving outcomes for older Australians."

ABC News, 11 June 2024

Pacific Retirement Estates (PRE) is a leading retirement village property developer, lessor and ongoing operator in Queensland. PRE offers investors a unique opportunity to participate in the growing senior living market, driven by a strong demographic tailwind and a proven track record of success.

Investment Summary  (ASX:PRE)

• Growth from planned expansion of Retirement Village (RV) property portfolio to over 422 villas over the next 3 years.
• Unique twin business model of property development (including leasing) and management.
• Exposure to demographic tailwinds from COVID-19, growth in the ageing population and interstate migration – hence high market demand in regional areas.
• NAB has issued PRE with a conditional offer to fund up to $10M in debt finance, based on its current holdings & business plan.

Cooloola Waters RV – Tin Can Bay (CURRENTLY OWNED)

Pacific Retirement Estates has a unique twin business model centred around in-house construction of new villas and the ongoing operation of those villas within retirement villages.

Land Acquisition

• New land is acquired in Queensland, focusing on coastal spots in rural areas.
• This target land is more affordable than interstate comparisons, lowering costs.

Villa Construction and Land Development 

• Incoming residents fund the constructions of their villas.
• Construction is managed and completed in-house, providing a high degree of control over cost, progress and quality.
• When the resident vacates their villa, the resale process of the villa generates revenue.
• Affordable housing model through standardised, high quality design and prefabrications.
• Low rise construction designed for retirement village residents.
• Scalable business model.

Leasing of Villas

• Residents hold a leasehold title, secured by their refundable deposit.
• PRE holds the freehold title to all villas and the RV land.
• PRE has up to 18-months to 'buy' back unsold villas.
• Annual average 10% resident resale rate of villas.
• No GST, land tax or stamp duty.

Retirement Village Operation

• Residents fund the RV's operation through levies.
• Enhanced EBITDA from scalability.

• Growth is driven by land acquisitions. Villa building costs are met by incoming residents.
• PRE is negotiating new land sites ready for capital deployment.

¹ 71 villas are currently built with 12 more planned.       

² Valuation and modelling is based on a total of 422 villas for 2024, now targeting 441 villas in 2025.

"Based upon the information provided by the management of the company, our opinion of the Equity Value of PRE ranges between A$43.5m to A$51.5m."

Vested Equities, February 2024

* Valuation based on a total of 422 villas, conducted in 2024. Total villas forecast for 2025 is 441.

Introduction

The information in this document is in relation to a potential opportunity to acquire shares (and/or converting notes in Pacific Retirement Estates Limited (PRE) (Securities). This document is not an offer of Shares. Any offer of Shares will be made subsequently.

No Disclosure Required

This document is intended to provide potential investors with some information about the businesses of PRE. This document does not constitute, and is not required to comply with the requirements for, a product disclosure statement, prospectus or other disclosure document under the Corporations Act 2001 (Cth) (Corporations Act). This document is not required to be, and has not been, lodged with the Australian Securities and Investments Commission (ASIC) or any other government body. This document does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in the Securities. Any future offer of Securities will only be made to persons who qualify as wholesale or professional investors or excluded offer investors (as defined in sections 708(1), 708(8), 708(10) , 708(11) and 708(12) of the Corporations Act) (collectively, Eligible Investors). PRE will not issue Securities to a person unless it is satisfied that the person is an Eligible Investor.

Forward Looking Statements

This document contains forward-looking statements concerning the PRE businesses, operations, financial performance and condition and includes financial assumptions, predictions and projections and conditions (Financial Information). Any statements contained in this document that are not historical facts may be deemed to be forward looking statements.

No Guarantee of IPO or Exit

This document refers to a possible IPO or other exit for investors in the Securities. Neither PRE nor any of its directors, officers, employees, advisers, or representatives guarantee that PRE will undertake an IPO or be able to provide an exit for any investors in the Securities. Any investors in the Securities should therefore consider their investment to be illiquid.

Confidentiality

This document is highly confidential and is being provided to prospective investors for them to consider investing in PRE. Its use for any other purpose is not permitted. It may not be reproduced or redistributed, in whole or in part, and its contents may not be disclosed to any person without the written consent of PRE.