Retirement village operator RetireAustralia plans to redevelop the former Caroline Chisholm Retirement Village in Sydney’s Lane Cove after purchasing it from PPB Advisory for just over $20 million.

The 48-unit assisted living complex was placed in liquidation in September last year after low occupancy and unit sales, as previously reported by Inside Ageing.

In an interview with the Australian Financial Review, PPB Advisory’s Phil Carter said Caroline Chisholm’s failure was not systemic but the result of lower occupancy and little to no stable income from deferred management fees.

 “As a not-for-profit facility for semi-independent residents rather than a full-service aged care facility, it encountered both lower occupancy leading to reduced income, and few unit sales over a sustained period meaning little to no deferred management fees received,” he said.

“This ultimately led to the distress of the retirement village. We don’t see the issue as a systemic problem.”

According to the AFR, the property attracted 13 bids from property developers and aged care providers.

The three highest bidders put in offers in excess of the valuation of the property.

RetireAustralia which is owned by Infratil Limited (50%) and New Zealand Superannuation Fund (50%) in a consortium managed by HRL Morrison & Co is understood to be planning a vertical development for the site.