People in Profile

News Monitor No. 59

This week in People in Profile we meet Sam Murphy. After beginning his career in valuations, Sam is now the director of valuations at Knight Frank Health & Aged Care who focus specifically on the aged care, private hospital and retirement sectors. Sam will be presenting at the RVA National Conference on October 26-28 October.

Sam Murphy

Can you tell us a bit about your background and how you came to be involved in the retirement village sector?

My parents ran their own architectural practice and I recall clambering around building sites with my father during the school holidays as a child. Unfortunately I didn’t inherit the ability to draw, and I trained as a valuer after completing my secondary education.

I have worked consistently in valuations since then, apart from a couple of years in the UK, where I worked for an architect on modelling the financial impact of energy efficiency measures in public housing. This is still an area of interest to me and it is great to see villages getting on board with energy efficiency measures. I qualified as a valuer in 1986 and as is typical for a junior valuer, worked across a number of sectors.

I worked for three property firms/estate agencies, which provided some exposure to the aged care and retirement sectors, before I joined John O’Grady in the late 1990’s. That is where my focus on the aged care and retirement sectors really expanded and I completed post graduate studies in Applied Finance and Investment. John had a number of long standing retirement village clients, some going back to the early 1980’s and in 2001 I joined Knight Frank Valuations to continue working in this area.

In 2005, we started the separate business Knight Frank Health and Aged Care to focus specifically on the aged care, private hospital and retirement sectors.  This has expanded to the point where we now have dedicated people in each mainland state capital city who are dedicated to the sector.

You are set to speak at the RVA National Conference, AdvantAge10; can you give us a little preview about what you’ll be presenting?  

We have long standing concerns about the way stamp duty is levied on established retirement villages when they transact. State revenue authorities have a habit of treating retirement villages as a pure property play and they appear to have the view that there is no business element in operating a retirement village. The impact of such recognition may be to lower the freehold, dutiable component of the transaction. We have a firm view that business is an inherent component of retirement villages and this should not be included in the assessment for stamp duty purposes.

The second issue is the rating basis upon which retirement villages are assessed. Some of the stakeholders in rating have considered a concept of “implied title” and essentially sought to adopt the gross realisable values or very near to that as a basis for council rates. Again, this ignores the value of the business attributable to the retirement village to which residents subscribe. If you talk to residents about what and why they buy into a successful retirement village, it is more about the sense of community and the services and activities they can access, rather than the land and buildings.

The implications of the new GST draft ruling, if applied in a similar manner, may also substantially increase state duties, if loan liabilities are considered a part of the consideration and the state revenue office continue to infer there is no business value to villages.

There may be some people in the wider community that are not aware of Knight Frank and what you do.  Can you please explain what the company can do for businesses and the services you provide?  

Knight Frank LLP is a leading independent global property consultancy.  Headquartered in London, Knight Frank and its New York-based global partner Newmark, Knight Frank operate from over 196 offices with around 5,300 staff, in 43 countries, across six continents. Knight Frank offers a full suite of property services.

Knight Frank Health and Aged Care are based in every mainland State capital city in Australia. We are able to provide a range of services to the retirement village sector without the “fly in, fly out” approach. The local knowledge of how villages operate within their legislation and relevant markets, delivered on a nationally consistent platform is what we are all about.

We now operate at a number of levels beyond simple valuation, including transaction management, often on an “off market” basis, plus development consultancy. We are often brought in at the very beginning of project planning to provide input on the market acceptability of projects. Ensuring consistency in the offering with the market segment is a key focus. 

Much of our work relates to project analysis and understanding development across a number of sectors. A number of groups have moved from aged care operations into collocated retirement villages as a way of generating additional funding. The way these two different operations work in an optimised fashion is a critical focus of our consultancy.

How do you talk to clients about “deferred management fees”(DMFs)? What is the most important aspect of DMFs?  

The DMF is one of the three elements of “price” that a resident is confronted with when entering a village, along with the entry price and recurrent charges. If these are out of balance, resistance may occur. The key element in the DMF is ensuring that the retirement village offering is a compelling value proposition. This is relevant, irrespective of the market within which the village is positioned. In other words the DMF needs to be in balance with the entry price, recurrent charges and the overall offering. This in turn needs to be appropriate for the market segment.

What impacts have you seen the GFC and the recent recovery have on the industry?  

I have certainly seen a number of villages struggle. In a volatile environment, villages failed because they did not meet the market in price, product or brand / management and the GFC has highlighted that process. Certainly some locations have struggled, where funding to enter the villages has been impacted by the ability to sell out of the catchment

Developers reliant on debt funding have seen opportunities for expansion, constrained by a selective appetite for lending into the sector from the banks.

Sales rates have been impacted in particular locations, but we have also seen some villages performing strongly over the GFC. Whilst some key indicators are more positive there is still reluctance from some banks to lend into the sector.

Do you feel that Government understands the benefits of retirement villages and how should government view retirement villages for rates and valuation?

There remains a degree of confusion within government about the role that retirement villages play in the community and most importantly that an operating retirement village includes a business element. There seems to be a lack of recognition or the add on service villages provide including allowing residents to rationalise their housing requirements, access equity and enjoy add on services that villages offer, reduces the demand on public services. This needs to be recognised more formally with an understanding of the services villages provide and the manner in which residents choose to receive these services.

What challenges do you see facing the retirement village industry in the short and long terms?  

Short term:

Access to capital. Some groups are planning major acquisitions into the sector for the 2010/2011 FY so it will be interesting to see how quickly those banks who have effectively exited the sector, renew their interest after increased commitment to the sector, by a number of well known investment groups.

Long term:

The Retirement Village concept is not well understood in the community and a portion of people regard retirement villages as synonymous with residential aged care facilities.  There has been discussion about different ways of describing villages such as active adult communities etc. The challenge for the industry is to extend the perception and benefits of the many facets of the retirement village market to the broader senior’s community to expand the market penetration and enhance the enjoyment of the residents within their villages. I think it is going to mean there will be a greater need for further market segmentation.

Different locations have differing cultures around the DMF. You would not necessarily try and impose the same exit fee structure across Australia. Some locations will find resistance for a structure that is acceptable elsewhere. It is in the nature of the competition and how well a village meets the market in a specific location.

What has got you excited at the moment re the industry?

Good quality product whatever its market position, still excites me. It is easy to become very complacent about conventional commercial property, but walking into villages run by operators who do it well is still a thrill!  Meeting people who are passionate about the retirement village sector is still a pleasure. The fact that a number of villages can still thrive through periods of economic turmoil is a testament to the sector and how it genuinely serves the interests of its residents.

What do you enjoy doing (e.g. hobbies sport) that people might be surprised to find out about you?  

Sailing on an S80 out of the Hobson’s Bay Yacht Club. We finished the winter series at the end of August and did respectably well.  I also spend time at my wife’s family farm helping out mustering sheep and other jobs about the place, when we can. It is a great environment for our kids and makes a pleasant change to do something quite physical.

News Monitor No. 57

This week in People in Profile we meet Bruce Message. Bruce is the Managing Director of Premier Consulting, and has been involved in banking and finance his entire career. In 2007 he was first introduced to the aged care and retirement sector. Since then, he and his team has transferred their skills and wisdom in a way that has provided greater certainty around an operator’s investment decision making process.

 

Bruce Message

Can you tell us a bit about your background and how you came to be involved in the retirement village sector?

For the majority of my career, I’ve been involved in the banking and finance industry, starting as a humble trader in the equity and interest rate markets, and working my way up to the role of Managing Director of Chemical Bank (a New York based investment bank).  The later part of my time in banking centred on project finance, and in 1997 I started my own consulting firm, Premier Consulting.

In 2007, Premier was appointed by a listed company to undertake a feasibility analysis of an existing retirement village and the potential acquisition of an ACF.  The assignment (as we have found with most aged care and retirement projects) required a detailed financial analysis of the projected 40-year operational period, and the feasibility of the unfinished development phase of the ILUs.

Through this work and from industry research, it quickly became apparent that there was a real need in the industry for detailed financial analysis around managing the delicate, but crucial, balance between capital and care.  Many operators do not have in-house expertise, and it seemed other external groups did not cater for the sector adequately enough when it came to providing both financial strategies and industry knowledge.

With the GFC rearing its ugly head, I identified that the industry would need to start being more accountable for the financial consequences of their business and investment decisions, and could no longer afford to rely on the strength of their balance sheets (which were starting to suffer from dramatic falls in investment income), or continued asset growth year on year.

We soon began working almost exclusively with owner/operators in the aged care and retirement sector to better understand their businesses, and help support their activities in meeting the needs of the communities they served, through measuring outcomes and setting benchmarking standards and performance.

There may be some people in the wider community that are not aware of Premier Consulting and what you do.  Can you please explain what the company can do for businesses and the services you provide?

Premier specialises in comprehensive financial feasibility, capital optimisation, project finance and risk management modelling, specifically for the aged care and retirement living industry.

The core of our business is industry-specific financial analysis, providing operators with a greater understanding of how their decisions impact on the financial position of their businesses. 

Some of our typical assignments include:

• Undertaking a comprehensive development/operational analysis for a large not-for-profit (NFP) of a proposed co-located 160 bed ACF and a 250 ILU retirement village.
• Preparing a detailed ILU DMF and unit pricing structures evaluation, including resident turnover influences, for a new community-based retirement village.
• Facilitating the capital funding requirements (both debt and equity) for an 80-unit vertical retirement village for a mid-sized NFP.
• Providing clients with financial analysis to support the recent Aged Care Approvals Round, and NRAS applications.

I believe one important key to our success has been an understanding of the balance between an operator’s financial objectives and their social mission.  NFP operators have many different challenges and are not necessarily driven just by development profitability, but are genuinely more concerned about providing essential services to their communities.

We’ve built our business around helping our clients understand the financial picture, which ultimately enables them to better serve their communities.

How do you talk to clients about “deferred management fees” (DMFs)? What is the most important aspect of DMFs?

DMFs are the lifeblood of an operator’s long-term cash flow and should reflect an appropriate equity investment return for the associated risk.  Without acceptable DMF streams, measured against projected resident turnovers, the village and/or operator can be put into financial stress.

We have developed financial models to assist our clients understand how different pricing structures impact on their business, by breaking down the analysis into the key variables, including pricing structures (DMF, capital gain share); sales values (over 30-40 years); occupancy periods and turnover rates; competitor analysis; and development costs, operating budgets and target returns.

As competition in the industry increases, we are likely to see more innovative pricing structures that better meet the requirements of incoming residents.  Operators who continue to offer only one pricing structure may suffer as a result, and we actively encourage our clients (as well as the industry as a whole) to explore alternative DMF pricing structures for villages.

The biggest mistake an operator can make is to assume that the same pricing structure will work across different villages and locations.  Each village is different, and typically requires a unique pricing structure (or structures) to maximise both financial returns and resident satisfaction.

What impacts have you seen the GFC and the recent recovery have on the industry?

We have seen increased resident interest purchasing units in NFP owner/operator villages due to the strong reputations of the church, charity and community brands, and the market’s perception of their mission to provide long-term care in the interests of residents (not shareholders).  Monthly ILU sales rates for many NFP villages are more than double that of the private sector.

We also note a change in the attitude of lenders towards aged care and retirement living projects.  Rather than viewing village/ACF developments as purely a ‘property lend’, lenders recognise the unique ‘business’ nature of these projects, and the long-term approach of operators in generating annuity-type returns. 

Although conditions are improving, lenders are still typically less supportive of new private sector developments, but continue to show a strong interest in funding NFP projects.

Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population?

Generally the government is trying to appear supportive, but there seems to be a disparity between the increasing demands of the ageing population and adequate levels of funding, particularly in relation to affordable housing.

There is a need for the government and the industry to work together to cater for the future demands of the ageing population, as well as addressing affordable housing issues across the community, in a bipartisan manner.

I believe there needs to be ongoing consultation between operators and Government around policy, particularly with balancing the cost of care and housing with the demand and needs of residents.

What challenges do you see facing the retirement village industry in the short and long terms?

In the short-term, the key challenges will include continual pressure on bank funding, managing capital, and assuring profitable and timely investment payback durations.  In addition, the cost and time in obtaining planning approvals will continue, with potential upward pressure on construction costs.

In regard to older villages or ‘brown field sites’, we are already seeing the negative impacts on capital in regard to the cost of unit upgrades, combined with the growing demand for environmentally sustainable design elements.

In the long-term, I believe we will see a dramatic shift in the market demands of village configurations (e.g. vertical vs. broad acre developments, small vs. large villages).  Operators will also need to consider providing an affordable range of products to meet the needs of superannuation-poor baby boomers.

What has got you excited at the moment re the industry?

I think it’s great to see a number of NFP operators embracing ‘high value’ village rollouts, particularly in vertical concepts, and using the strong returns to “cross-subsidise” less profitable care services in their aged care operations. 

Many are also giving considerable thought to what the future baby-boomer set will demand in terms of housing arrangements.  Will they want more and more broad-acre large community villages, or will they want community living in relatively smaller apartment style blocks without all the community facility service?  It is very exciting to know that these issues are at the forefront of people’s minds; a sign of a healthy industry.

Looking through the eyes of a financial professional, I am also encouraged by greater levels of financial scrutiny being undertaken by both operators and Government.  Villages need to be viewed financially from the portfolio position, not just a standalone operation.  Presenting the consolidated effect of the total portfolio is paramount for decision-making.

And of course, what is really exciting is the size of the village development pipeline coming on-stream over the next 2-3 years.

What do you enjoy doing (e.g. hobbies, sport) that people might be surprised to find out about you?

I try to spend most of my weekends in the country where I’ve had my fair share of interesting moments (usually involving veterinarian needs of cattle and horses).  I also enjoy a quiet Sunday drive around the racing track, although I don’t get out as much as I would like.

I suppose I’m somewhat unique in my approach to work; I “live to work” (not “work to live”).  I’m passionate about working with organisations that are genuinely striving to help other people and the community.  I believe we are at a real cusp of exciting change in terms of the quality and variety of products and services on offer by the industry, and enjoy playing a part in the process.

News Monitor No. 56

This week in People in Profile we meet Katheryn Jones, RVA regional manager in Western Australia (WA). Find out what Katheryn believes sets the RV industry in WA apart from the other states and territories.

 

 

 

 

 

 

 

 

 

 

 

 

RVA WA regional manager Katheryn Jones

How did you get involved in the Retirement Village Industry?

Prior to joining the RVA, I experienced the varied and diverse landscape of local government.  I was involved in developing a conceptual framework in positioning local government as a desirable and consumable brand, aimed at shifting consumers paradigm thinking of rates roads and rubbish to viewing local government as a multifaceted organisation providing over 200 products and services.

In 2009, I took maternity leave and when I returned to work on a part time basis I felt like I was swimming around in the same waters, similar to a Hoi fish. However, unlike the Koi where they are happy to stay in there pond once that have come of size, I was in search of a bigger pond where I could continue to expand my skills set and be challenged. 

It was by chance I transitioned into the retirement industry. I just happened to have made a contact within the industry who suggested the role of national membership manager and WA regional manager at the RVA may just be the challenge that I was looking for – and how right they were.

What does your role involve on a day to day basis?

The exact nature of the role varies from day to day.  Typically the post carries the responsibility for developing and implementing strategies to grow the membership base. In addition to being proactive in meeting the needs and expectations of our members, through providing member representation, expert advice and information

What’s of particular interest to you within the industry in WA at the moment? What has got you excited at the moment re the industry in WA?

I am passionate about building winning brands in the market place, and what a great opportunity I have been given in furthering the brand relevance and prevalence of the RVA on both a state and national platform.

I am very excited to be entering this dynamic industry with so much growth potential.  I thoroughly enjoy working within a complex business environment, where I can execute innovative, and market leading strategies that ensures maximisation of long-term brand health and commercial success.

What are your plans over the next coming months to attract membership?

The nature of the business is it is one of a complex nature and can certainly be very unforgiving however The RVA is in a great position given there is no national body like it, a monopoly to be sustained by continuing to enhance the visibility of the Australian retirement village industry and draw value for an increasingly important and expanding market.

Like any membership based organisation, members seek benefits that enhance their business and/or activities not merely a basket of products and services.  It is therefore of paramount importance to strike the right and over the next few months I will look at achieving this through:

• A relentless focus on providing value for our members via the way of market research along the lines of our existing membership base. Establish where members see the most value; what is the least value; what would they like to see more of; and how can the RVA help them further achieve their business ambitions.
• Relationship marketing – ensuring we are continually in touch with our member base and the issues that are not only important to them but impact them.
• Look at innovative ways to maximize revenue from fundraising, events, functions, professional development membership upgrades – leveraging existing partnerships and developing new ones through sponsorship dollars paying particular attention to the member experience.
• Education campaign around the word accreditation – it is just not a buzzword in the game nor is it pretence to monitor standards to exploit the vulnerable. It is an important marketing tool and should be used accordingly.
• Reinforcing positive stories in the media, through an extensive media and PR campaign around education and awareness as to the value of the RVA. Media has the ability to shape the views and perception of others and it is one that we need to be driving and in control of.  The media have a nasty habit of portraying the industry as a bunch of ruthless commercial entities.
• Investigate the feasibility surrounding a referral and or loyalty program.
• Unlocking the value proposition for the non profit sector.
• Synchronised national membership drive – result in concentrated focus on recruiting and retaining members. Promoting benefits and broadening our base.
• Leveraging new channels and tactics to drive our customer engagement and intimacy. Ensure that we have the right key measures for success.
• Aligning all state based activities, ensuring we have a planned approach to marketing and communications on a national level, presenting a unified brand and helping to achieve improved economies of scale

Where do you see the industry heading in the short, medium and long term in WA?

In the short term, I expect we will see noteworthy innovations in new retirement housing and lifestyle products and services. There are significant new market opportunities being created with the ageing of the baby boomers, in addition to witnessing a momentous movement in quality assurance.

In the medium term, I predict that we will see new retirement villages being larger in order to achieve improved economies of scale and incorporate more accessible and affordable housing for a wider socio-economic spectrum of retirees. In addition to the creation of health oriented developments, with retirement accommodation being integrated in and around health precincts. 

In the longer term, I think we will see less difference between the operators of the not for profit and profit sectors both in terms of there corporate structures and community quality.

What sets the RV industry in WA apart from other states and territories?

I believe passion is what successful businesses are built on, it is the driving force and the inner desire that make you continually want to go above and beyond. From my encounters with those individuals and organisations operating within the Western Australian market, the sheer volume of passion to evolve ideas into a business reality truly amazes me.

The RV industry in WA is empowered, committed and dedicated to working together to achieve common goals and I feel both proud and excited to be involved in it.

What do you enjoy doing (eg hobbies sport) that people might be surprised to find out about you?

Running, gym, netball, reading, renovating and interior design.

News Monitor No. 54

This week in People in Profile we meet Dennis Chamberlain, CEO of James Brown Memorial Trust. Dennis has had a long and varied career in the aged care and retirement village industries. Find out why Dennis is a strong supporter of the RVA Accreditation Program and why he believes our industry needs to embrace this freedom and support it by growing the industry’s commitment to become accredited.

Dennis Chamberlain, CEO of James Brown Memorial Trust.

Can you tell us a bit about your background and how you came to be involved in the retirement village industry?

My early career included stints in working for the army in administration, credit collection in the freight industry and finance in the grain industry, until I made a complete career change into aged and community care when I joined the Masonic Homes in the mid 1980’s. That’s where I first came into contact with independent living for older people, as retirement villages were known as then. Roles with Royal District Nursing and local government followed, during which I developed a strong interest in quality systems in aged and community care and retirement living. I have formal studies in accounting, human resource management and business management, but I have always worked well when directly involved with people. I truly think I have done my best work when engaged in serving our older citizens and other people of any age in need.

There may be some people in the wider community that are not aware of James Brown Memorial Trust (JBMT) and what they do. Can you please explain what services the company provides?

There are three main programs in JBMT. They are retirement living – showcased at our Kalyra Heights Village, Belair, our residential aged care and services program located at Belair and McLaren Vale. Also our managed site at Angle Park, and our Affordable Housing program, located at six sites across metropolitan Adelaide.

The Trust is, by all standards a survivor, having first been set up in 1894!   Its mission is “In accordance with the Will of Jessie Brown, to perpetuate the memory of James Brown by providing and facilitating humanitarian services which improve the quality of life of those in need.” Over almost 120 years the Trust has provided a wide variety of health and accommodation services to people in need. Our Belair site was purchased in 1894 and initially we operated as a Tuberculosis Sanatorium for very many years. When that disease was all but eradicated, the site became a community hospital as well the site of South Australia’s first hospice, and now a modern ageing in place residential aged care facility. In the period from 1910 to after World War 2, we also operated a residential facility for children and adults with physical disabilities and TB at Osborne House, in seaside Tennyson. In 1959 the Trust opened its first low cost housing site at Findon, and went onto open another five sites across Adelaide which has now become more widely known as the James and Jessie Brown Cottages, offering low cost housing to single people of any age who are in receipt of a disability or aged pension and at risk of becoming homeless.   Finally in the 1990’s we expanded residential aged care services both at Belair and McLaren Vale. In the last few years we have been redeveloping and expanding our affordable housing program, but the jewel in our crown remains our beautiful Kalyra Heights Village, which was commenced in 1995 and completed in various stages up to 2007.

What are some of the benefits retirement villages bring to their wider communities?

One of the key benefits we see is the ability of people to move to our village while remaining as a part of the broader community because in many cases the move they make is only a matter of a kilometre or so from their former family home.  This allows our people to maintain their broader connectivity to their friends and connections in the wider community while enjoying all the benefits that living in a village can bring. No longer do they have the care and responsibility of maintaining a home and garden; they are free agents to come and go as they please, knowing that their home in the village remains safe and secure for them on their return. Locating villages in mature suburbs is essential, so that isolation that new residents feel when moving to a new location is minimized; when it comes down to it, most people moving to a village prefer to do so if they can minimize the upheaval of moving away from their friends, clubs and associations.

A key benefit, which is not always understood, is that when an older couple or older single person moves into a village, that former family home is then available to accommodate a new family – there is a serious shortage of family housing across Australia and governments, councils and planners need to recognize and support the retirement village option as a key mechanism that can release a steady supply of existing family accommodation into the market in many suburbs of our largest cities.

Loneliness is the greatest curse of becoming older, and can lead to depression and even mental illness. Choosing the retirement village option gives older people a whole new opportunity to become engaged; statistics show that most residents of retirement villages are happier, healthier and live longer and useful lives when they become engaged with the opportunities that a vital village social calendar offers. This is a tangible benefit to the cost of health care and helps in maintaining well-being and physical capacity that must not be underestimated when negotiating with the bureaucracy.

Finally many residents of retirement villages become valuable volunteers for their village and the surrounding community, as being freed up from home upkeep and associated duties (more me time), they now often have extended capacity to become more involved in support of their local club, charity or association.

What do you see are the major benefits of the accreditation program?

Our Village was one of the earliest in South Australia to become accredited and this continues today. It is a very real and tangible form of risk management for the operator/owner, as it ensures that a village has robust systems in place that can be relied upon when problems issues arise. Accreditation is not just a process for the office, though, as village residents are engaged through a survey and feedback process and interviews with the Accreditation Assessors are available to residents and residents’ committees, so everyone benefits through the process.  The other main aspect, to my mind, is that governments, whether they be local, state or federal are keen to see that there are processes that ensure transparency in business, especially when dealing with older consumers and their complaints. An industry that has a robust, widely accepted and well managed quality or accreditation system will always be preferred to one that has no such checks and balances in place. It is in the interest of every operator to consider why they haven’t adopted a commitment to become accredited with the RVA’s Village Accreditation. Accreditation sends a clear message to regulators that they are not needed as the industry already works in partnership with its consumers to embrace a continuous improvement philosophy, which resolves problems as they arise, so that there is no need for a “big brother” approach. The final essential benefit, to me, is that the RVA accreditation program is voluntary, and not directly mandated or regulated by governments. Our industry needs to embrace this freedom and support it by growing industry’s commitment to become accredited – if a large portion of members are accredited our commitment to quality cannot be questioned by consumers or regulators.

Can you discuss the roles you see retirement villages playing in housing diversity, job creation and the economy?

Retirement Villages provide many older people an alternative to conventional housing at a time in their lives when they want to enjoy their lives for the years that remain to them without being a slave to the maintenance and upkeep of a large house and garden. Retirement housing offers a very diverse range of options, from formal villages laid out as mini-suburbs with community centres, bowling greens, swimming pool and gold courses, vertical villages in multi-storied buildings, independent units with no frills to fully serviced villas and apartments with every service available at a fee. Just like the accommodation industry to which it is closely related, the housing options for the over 55’s are diverse and while there is no official rating, there certainly are 5 and 6 star villages right through to budget options that are still popular and which struggle to fill demand from customers.

This diverse range of housing diversity provides opportunities for good customer focussed staff to excel. As the demand for additional services increase, village operators are increasing their staffing profiles to satisfy hospitality needs (catering, cleaning and laundry) and personal and care needs (registered nurses, therapists and beauticians). Many qualified people are attracted to career opportunities in the Retirement Village Industry as they can work and receive due reward for their skills while genuinely making a difference in people’s lives who are still able to appreciate their efforts and give recognition for good service. The retirement village industry needs to ensure it provides training development and reward systems that keep these people in the sector in the longer term, especially as competition for quality staff across all industries is expected to become much fiercer in the next 20 years.

Nothing helps the economy more than the construction industry and a healthy retirement village sector will assist state and federal governments achieve their goals in providing meaningful employment for all Australians who wish to work. We have seen how the economy got the shot in the arm it needed through the government’s Economic Stimulus Package – if only a minor portion of that is directed to assist the broader aged care and retirement industry, the economy will benefit many times over. 

What challenges do you see facing the retirement village industry in the short and long terms?

• A good supply of suitable land in locations that appeal to older people, as currently there is a shortage of housing of all types and an emphasis on providing homes for families.   Government policies need to be targeted at supporting the retirement village industry, as by moving, older people can unlock the underutilized family homes they have occupied for many years for other larger family groups to enjoy.   However, I do not see evidence that there is much happening on this score at present.
• A local government planning process that recognizes the benefits of housing density inherent in a retirement village and that this is a positive outcome for its community.   This needs to happen sooner rather than later, and in some states there is evidence that Councils have to include in their Plan Amendment Reports capacity for denser housing, particularly where land is adjacent to transport corridors.
• A reliable supply of development capital.  We need to ensure that investment houses actively support our sector and not let it stagnate as a result of the lingering Global Financial Crises fallout. There is an opportunity right now for developers to engage with builders who will have spare capacity shortly as the school hall programs and others aspects of the Economic Stimulus building boom work towards a conclusion.  
• Maintaining credibility with the Baby Boomers as they age will be a longer term challenge. Baby Boomers have earned more, and spent more than any other generation, but will they be willing to purchase a form of housing that may not appeal to them as much as it did to their parents.  
• The Federal Government has signaled that it wants retirement villages to play an increasing role by providing housing to older people and holding them longer in retirement villages as an alternative to a move to an aged care facility. While many operators are keen to embrace this opportunity, it is important that industry and governments understand what this will look like. There is a rigid regulatory process applicable for aged care homes which must not be allowed to creep into the operations of retirement villages and it is essential that we are included in the planning of just how services to maintain older frail aged people in retirement villages longer will be funded and delivered in a partnership arrangement. The regulatory framework for being an approved provider of community services and competing in the Aged Care Allocations Round is a current impediment for many retirement living operators, and a new way needs to be found if this objective is to gain widespread support. 

News Monitor No. 53

This week in People in Profile we meet Judy Martin of ThomsonAdsett.  Judy commenced her professional career as a registered nurse and has more than 20 years clinical and management experience. Judy is responsible for leading the company’s business development by managing client services with a major focus in health, aged care and retirement living.

Can you tell us a bit about your background and how you came to be involved with ThomsonAdsett? 

I commenced my professional career as a registered nurse, working for over 20 years in clinical and management areas. Over the last ten years I diversified into staff development, training, employment and recruitment services, health education, client services and management. I progressed with post graduate qualifications in aged care management and adult education. I first came across ThomsonAdsett when we were living in Malaysia where my husband was posted to the Australian High Commission.  ThomsonAdsett were very involved in the healthcare industry there and were trying to establish an aged care industry in that country.  I started consultancy work with them for the time we lived in Kuala Lumpur and kept in contact with the company on return to Australia. On returning home I established the ACT Government’s 24rh Triage HealthCall centre and on moving to Queensland two years later worked as a director of nursing for BlueCare. During this time I kept in contact with ThomsonAdsett and in 2006 they offered me a position, which I gladly accepted.

In my role with ThomsonAdsett, I am responsible for leading the company’s business development in client services with a major focus in the health, aged care and retirement living disciplines. My role entails managing ThomsonAdsett’s care services activities nationally and internationally providing leadership to ThomsonAdsett staff in customer relationship management and business growth.

I have been honoured to initiate the retirement and aged care industry study tours, Studying and Advancing Global Eldercare (SAGE) and maintain a key role coordinating and leading these tours.

There may be some people in the wider community that are not aware of ThomsonAdsett and what they do.  Can you please explain what the company can do for businesses and the services they provide? 

Growing from a single room office in 1971, ThomsonAdsett now features in the prestigious BD World Architecture magazine’s list of the ten largest firms across Australasia. ThomsonAdsett has offices in Australia, Hong Kong, Dubai and Indonesia bringing together an experienced staff of over 160. ThomsonAdsett has realised major architectural works nationally across a broad range of clients and architectural disciplines. ThomsonAdsett’s accumulated experience with retirement living solutions, together with a unique planning and design process, constitute a practical resource, which has significantly contributed to Australia’s retirement industry and international markets.

As active participants in the industry for over 30 years, our priorities as a specialist consultancy practice are driven by the unique disposition of a new generation of residents. Current demographic trends by way of Australia’s ageing population have incited retirement providers to refocus their service offering to provide ageing in place and an appropriate level of quality and choices. As specialist consultants in retirement living, ThomsonAdsett recognises that the success of clients requires commitment that goes beyond architecture. The ThomsonAdsett approach to clients has been to move away from a project based relationship and develop a rapport where, more than just architects, staff become trusted business advisors. Our design approach encompasses a range of structured processes aimed at providing clients with not just buildings, but rather a total packaged solution for their developments.

What are some of the benefits retirement villages bring to their wider communities?

I think that an intergenerational, integrated approach of retirement communities have the ability to reshape social infrastructure back to the communities of the past where all generations look out for each other and support each other.  Over the last 20 to 30 years, we have slowly become a disconnected community and I believe retirement villages play an important role in revitalising ‘knowing your neighbour’.  I do not believe, as an industry, we can underestimate the power of that potential.

Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population? 

I have no doubt the Government is starting to become aware of the Tsunami of Ageing that is just around the corner.  I am concerned they may not be moving quickly enough to address the rapidly approaching needs of the baby boomers moving into retirement and the dementia crisis that looms with longevity increasing. I certainly believe far more could be done and the industry, both retirement and ageing, could be engaged far more by Government and their representatives.

You recently led a group to San Francisco for the Global Retirement Communities Tour. What are the major differences you observed between the two countries and what can the Australian retirement village industry learn from their US counterparts? 

Australia caters far better for the middle class. The USA has support for their lower income earners and the upper class pay for magnificent retirement developments (lifestyle choices); however, the needs of the middle class are not addressed as effectively as here. The Continuing Care Retirement Communities (CCRCs) and virtual retirement communities are a concept that has not arrived here in a big way – YET! I believe the US models of CCRCs as lifestyle retirement options are a great learning platform for the Australian industry showing what can be achieved, that “build it and they will come” has worked for this emerging market and how implementing a ‘user pays’ menu of services is attractive to residents choosing to live in a lifestyle retirement community. Certainly the scale of developments in the USA is far advanced to Australia however we need to remember that it is also based on population need.

There is a great deal to be learnt from a number of countries internationally and I would encourage senior managers and decision makers in the industry to take opportunities to travel to see other models that could be implemented here. We are delighted to be involved with the RVA organising SAGE tours in this regard and were thrilled to have RVA CEO Andrew Giles along on the inaugural RVA tour recently.

What challenges do you see facing the retirement village industry in the short and long terms?

I believe managing the challenge of the line between lifestyle/ageing in place and care needs that may be required by residents, will be one of the major challenges for developers, owners and organisations.

As  only five percent of Australian retirees over 65 choose to live in a retirement village and with the ‘boomer” tsunami about to hit, the challenge will be making sure there are appropriate and appealing lifestyle accommodations and care accommodation, and/or combinations of both available for CHOICE options for this emerging market. The timing is now a critical issue for retirement living developers and operators.

News Monitor No. 50

This week in People in Profile we meet Susan Malone, Managing Director of Independent Management Group. Susan has a diverse business background. As a result of many years as Managing Director of companies involved in property development, tourism, hospitality and manufacturing, Susan’s breadth of experience is now well applied to the retirement village industry and the unprecedented growth the industry is experiencing.

Q: How did you come to work in the retirement village industry?

In past years I had been working in the property development and hospitality industries. This included creating subdivisions, residential construction, residential renovations and developing and operating resorts and restaurants. Returning to Melbourne after six years on Magnetic Island where I owned and operated a resort, I was looking to move back into the property industry when a rather unique opportunity arose. Becton was looking to create their ‘Classic Residences’ brand and their development of over 300 units at Brighton was to be the first true resort style retirement product in Melbourne. This seemed to me to be the perfect blend of property and hospitality and so I joined their team as General Manger of Classic Residences Brighton.

Four and a half years later I left Becton to establish Independent Management Group (IMG). IMG is a specialist consulting firm to the retirement industry and assists developers or village owners in all facets of their design, development, sales and operations. In 2007 IMG created Coast and Country Villages (CCV) which is our management brand that brings various owners together under the one brand to deliver brand strength and professional sales and operational management.

Q: How do you talk to clients about the DMF?

All of us look for value for money. Our clients want to understand the value proposition of the DMF. We must be able to demonstrate what it is the residents will get for their money. If they can see there is a value they will agree to pay. It is when clients are told that this is just what the industry does, or similar, that they understandably become sceptical. We show our clients in very clear terms how they are advantaged by deferring the upfront payment they would normally need to make to receive the benefits of the facilities and lifestyle the village offers.

Q: Has the current financial climate affected the sales of any of your villages?

We have found this has varied from location to location. For example in areas where the first home buyers grant positively affected the residential sales market, our sales held well as clients could sell their family home and hence move into the village relatively easily. It has been in areas where the local market turnover rate slowed that has resulted in mild reduction of sales rates.

Q: Do you find the decision to move into a village is usually a family decision or one left to the residents?

The answer to this is neither one nor the other. We are selling independent living and most clients are making decisions for themselves based on how they want to live in the future. The most common position is that clients will talk to their family about why they are doing what they are doing but not ask for family ‘permission’ or let the family make the decision. There are some, however, who will change their mind about purchasing in order to accommodate the contrary wishes of their family. Then there is the numerically minor category of those who are considering a purchase because their family feels they should. Naturally, we prefer that all members of the family understand the nature of the purchase and see the value in it for their parents.

Q: Have you heard people say that they wish they would have made the decision to move into a retirement village earlier?

I doubt there is anyone working in the industry who has not heard this. And really, isn’t it one of the nicest things a resident could say about their village? This common comment demonstrates the value of a well run village: happy, satisfied residents!

Q: What does your role involve on a day to day basis?

As Managing Director, my days and duties vary constantly. With villages in Victorian suburban and regional areas and interstate I spend quite a deal of time travelling. It is important to see and be seen at our villages and to be available to residents and staff. When at the office, I may be working on a village design review or modelling service provision or operational budgets for a consulting client. I am committed to the RVA and am involved in the Manager of the Year, the Vic/Tas regional committee, accreditation training and professional development. Of course, I also have the business of running the businesses. I have the most wonderful staff I could hope for so they make my role so much easier. I love doing what I do so rarely do I feel like I am working (although there are a few times when this may be debateable!)

Q: What has got you excited at the moment re the industry?

It would have to be evolution of the product. With the increasing maturity of the industry we are seeing a greater variety of product offerings coming into the market. No longer do we have a ‘one size fits all’ product – take it or leave it. We are seeing the emergence of entirely new models for developments which cater for individual lifestyle preferences. There is still so much growth yet to happen that being involved in this is most exciting. Who knows when, but one day we may see villages based around hobbies or interests; SOHO villages for ‘non-retirees’; sporting club related villages (can you imagine a Collingwood FC Retirement Community?) and a host of other opportunities.

Q:  What do you enjoy doing (e.g. hobbies sport) that people might be surprised to find out about you?

I must admit to being a Geelong Football Club devotee. I suffered loyally through our long run of bad years so am currently enjoying our time at the top. A Friday night game at the ‘G’ is a great way to end the week.  

My husband and I are ‘doggie people’ – we have a giant schnauzer and love to spend time with her. We also believe that dog owners should be responsible in this commitment and we enjoy obedience training which we have done with all the dogs we have owned over the years.

Live theatre would be my other favorite pastime. Musical and dramatic productions, especially by the Melbourne Theatre Company, provide me with a regular dose of escapism.

News Monitor No. 48

This week in People in Profile we meet Noel Forster, National Product Leader for VillageWISE. Noel is based in Western Australia.

Can you tell us a bit about your background and how you came to be involved in the insurance sector?

In December 1968 when I finished school in Ballarat, Victoria, I had the opportunity to work at the State and Commonwealth public services, three banks and an insurance company. I chose insurance as I thought this would be an ideal career path. Except for 12 months when I was travelling overseas in the 70s, I have been involved in insurance all my working life in various underwriting and management roles. I have been at Jardine Lloyd Thompson for nine years and for most of that time have been the National Product Leader for VillageWISE. I am married with two sons in their twenties and fortunately no grandchildren, yet! I am a long suffering member of the Melbourne Football Club, but I believe our day will come in the next couple of years.

What are some of the benefits retirement villages bring to their wider communities?

Villages bring a sense of belonging whereby residents can remain independent and become involved in the village community as much as they are willing to. Village life offers residents activities that they may not have been involved in had they been living in their own homes. New friendships are made and residents can enjoy a new lease of life by discovering a new and rewarding lifestyle. Being in a retirement village environment will bring peace of mind to families who will be assured that the village offers a secure lifestyle for residents.

Can you discuss the roles you see retirement villages playing in housing diversity, job creation and the economy? 

There will be a spiralling down effect whereby incoming residents will sell the family home to move into a village with more manageable accommodation. This provides buoyancy to the real estate market. There will be an increasing demand for village and lifestyle resort accommodation which will stimulate the building industry. As more villages come on stream, there will be jobs for village managers and support staff. I believe residents in need of health care will be encouraged to remain in the village by the village offering community care packages as there are not enough places in care facilities around the country.

Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population?

No, not really. There has been a lot of talk by successive governments but not much action.  Having said that, the Federal Government is encouraging people to work longer. Recently, the West Australian Government announced that restrictions on Workers Compensation benefits for workers aged 65 and over will be removed this year. With baby boomers approaching retirement and looking to undergo a lifestyle change, the government should be cognisant of the issues which will arise, particularly health. Operators and developers should be given every opportunity to accommodate the ageing population’s requirements. This is where the RVA could use its influence to ensure that all governments are aware of the role the industry plays.

Do you think issues such as global warming and weather pattens will affect our industry and they way it is insured?

The recent Melbourne and Perth storms certainly affected retirement villages with many hundreds of thousands dollars damaged caused. I am a bit of a global warming sceptic as I have seen similar weather patterns in the 60s, although I have never seen Lake Wendouree in Ballarat completely dry as it is now. Insurers are prepared for these types of catastrophes and will do everything in their power to ensure that claims are settled as quickly as possible.

Do you feel that the insurance industry understand the intricacy of retirement?    

The industry is slowly learning the difference between aged care and retirement lifestyle. I am sure that a retirement village resident would take umbrage to the inference they were in aged care as they will be the first to tell you that they are in independent living and are not being cared for. 

What role and impact do you believe the insurance/risk management sector has on retirement living projects? 

From the VillageWISE perspective, we offer a suite of products serving the needs of retirement villages, lifestyle resorts and their residents. The products have been developed in conjunction with the RVA and are continually reviewed to ensure they respond to market changes. VillageWISE was specifically developed in conjunction with the RVA for its members in 1997 and provides the following key benefits:

• development of the risk management guide
• sponsorship at state and national conferences
• presentations at managers forums on relevant topics

What challenges do you see facing the retirement village industry in the short and long terms?   

As I mentioned previously, the perception of retirement villages is misunderstood by the public at large as well as by Government bodies. The RVA can promote the industry by raising the awareness of what retirement villages offer and the contribution they make to society. Rarely does the sector get positive media coverage. The retirement village sector is a growing industry with many baby boomers looking to downsize and have a sea change for the next chapter in their lifestyles. The industry must be prepared to promote itself for the influx of residents and the needs that new retirees will require. 

News Monitor No 47

This week in People in Profile we meet Diane Williams.  After a successful career in recruitment, Diane has now been working in the retirement village industry with Gannon Lifestyle Group in South Australia.

How did you come to work in the retirement village industry?

Firstly, to qualify my work experience I have an Advanced Diploma in Business, Human Resources and most of my working career has been in recruitment.

I worked for a national recruitment company in the United States for a number of years, managing a large branch of ten consultants and up to 450 temporary staff at any one time. It was a very busy and quite complex job as there is no Job Network in the US, and consequently, a large amount of my time was spent resolving the many issues relating to the temporary staff.

I also had a sales focus and had built a portfolio of clients to service and then had operations management including payroll, budgeting, financial and statistical reporting.

When I returned to Australia, I took a position as a business manager with Employment National where David Young was general manager.

When David went to work for Gannon Lifestyle Group as general manager, he contacted me and asked if I would be interested in a career change working in the retirement village industry.

After some consideration, I decided to accept a position of village manager as my previous work experience had given me excellent skills transfer.

How do you talk to clients about the DMF?

Firstly we explain the DMF in our brochure as one of the questions and answers, so it is addressed straight away and open for discussion.

I explain loan license to prospective residents and point out that the company does not take any fees from the incoming resident. They take a percentage at the end of tenure from the outgoing resident, which is why it is called Deferred Management and then I give them a breakdown in simple terms of the DMF, ending with the maximum percentage taken out. I explain the Capital Replacement Fund and the percentage it is made up of.

I tell them that the company uses some of this money to further develop the business and that there is no stamp duty payable by them so that is a saving.

I also explain that traditionally over a period of time the capital value of the villa will likely to have increased, particularly if the resident has been in the village for a number of years, and as the company retains the property in excellent condition, it will attract good resale. If the residents had still been in their own home, they may not have been able to maintain their property and consequently may have to take a lesser price on sale.

Has the current financial climate affected your sales?

Because the housing market did not falter too much and the new home buyers grant was still active, I can’t say that the current financial climate has affected sales overall very much. Sales have pretty much been consistent.

Do you find the decision to move into a village is usually a family decision or one left to the residents?

In the independent living units, the residents usually made the decision, particularly married couples. Single people tend to have a family member, usually a daughter with them, to assist in making the decision.

Serviced apartments attract a different type of resident on an as needs basis therefore, they are already quite frail. These residents always were accompanied by family who assisted strongly in the decision to make the move.

Have you heard people say that they wish they would have made the decision to move into a retirement village earlier?

Most definitely. I hear this frequently after a resident has settled in and made a social commitment to the village.  I still feel that there is a perception that one has to be very elderly and relatively frail before looking at moving to a retirement village.  As the industry develops more and residents talk about their experiences to others and advertising promotes otherwise, I think this perception is gradually being eroded.

What does your role involve on a day to day basis?

At present, I am preparing to take a new village through construction.

This village will have 120 independent living units and 30 serviced apartments. We are building a spacious and well-appointed community centre. There will also be a kitchen and dining room for meals mainly to be served to the serviced apartment residents and there will also be staff on duty 24 hours a day.

My day at present is preparing for the opening of the village in late April. A new marketing campaign will soon be released and my role will then be sales and village management.

Currently, I am participating in the preparation of the residence contract and maintenance fees and setting up my operating system for the village.

My day will consist of:

• continuing to sell the Estate, taking enquiries and setting up meetings with prospective residents
• taking prospective residents through the sales process, making sure all documentation is correct and that the residents are fully informed throughout the process
• settling in new residents and managing their needs through the often difficult changes that they are making during this time, particularly through the construction stage
• as the village becomes more occupied, my day will be filled with managing residents issues, liaising with families and support for residents, accounting procedures for the village, managing the finances of the village, organising activities for the residents and working with the residents committee, managing staffing rosters, payroll of staff, managing repairs and maintenance and upkeep of the village. And finally, integrating the village with the local community

What has got you excited at the moment re the industry?

The growth of the industry is exciting to me for a couple of reasons. As we develop more villages, it means that we can take care of more retirees that could have years of increasing isolation as they become more housebound and stressed in trying to maintain their homes as they become less able to cope. We can give them a comfortable lifestyle with a social circle of friends they may not have had and will be there for them in later years when they need more assistance.

I also feel that the industry, through experience and research, is becoming better placed to accommodating current and future residents’ needs. I feel that the next generation of retirees is going to be much more demanding about what they want. I am one of them!

What do you enjoy doing (e.g. hobbies sport) that people might be surprised to find out about you?

I am a diver. I love the sport and have dived in wonderful locations. Just recently, I did a second trip with Rodney Fox Expeditions, diving with sharks. That remains one of the most amazing experiences that I have ever had. Seeing those magnificent creatures cruising past effortlessly and so majestically was awe inspiring to say the least.

News Monitor No 46

This week in People in Profile we meet Mike Graebner. Commencing his successful real estate career in 1981, Mike rapidly earned a reputation as a true professional in the industry. His success enabled him to purchase North Coast Real Estate with his partners in 1995 and establish Seniors Own Real Estate in 1999, which provides specialist marketing services to the over 55s sector. He has played a major role in bringing many new retirement village projects from commencement through to a successful completion.

How did you come to work in the retirement village industry?

I had worked in residential real estate for 15 years when I was fortunate enough to get involved in the planning and selling of new retirement villas adjoining an existing aged care facility at Meath Care at Trigg, a northern coastal suburb of Perth. It’s now another 15 years down the track.   As a result of my involvement I was asked to sit on the Board of Directors, which I did for about 13 years. Shortly after the completion of the first project I was asked to consult on another village project and I rapidly identified that there was a need for someone to bring the combination of sales and marketing skills and knowledge of the Retirement Villages Act to the senior’s market. I really enjoyed dealing with the seniors and it increased my job satisfaction considerably to think I could provide a useful service to this market.

How do you talk to clients about the DMF?

We don’t apologise for it. We tackle it head on with prospects and explain the rationale behind it, the concept of an investment in the lifestyle and the way it works in practice. Whilst not every prospective resident is keen on the concept I have found it easier over time to demonstrate the benefits compared to the early days when people weren’t as educated about this topic. I can recall a public meeting of over 100 local people in a country town during the start up phase of my second project, Novacare Busselton, the concept was new to the local area and there were quite a few sceptics in the audience. Nevertheless, the village is very successful today. I can see a need for alternative forms of ownership in the future.

Has the current financial climate affected your sales?

People are definitely more cautious and taking the time to look around and do their research. There is still some concern about what their own home will fetch but on the whole, people seem to have come to terms with the financial climate than say 12-18 months ago and have much more realistic expectations on the sale price of their own homes. We had an extremely busy 2009 once the market accepted this reality and helped in no small way by first home buyers unlocking sales up the line and allowing our prospects to make a move.

Do you find the decision to move into a village is usually a family decision or one left to the residents?

This will depend on the age of the resident and their health; younger seniors are much savvier about the retirement village industry and the various contracts than before. Access to information on the internet and the profile of organisations such as the RVA has helped to broaden their general knowledge of what’s on offer.  The desire to be closer to family members is often a key driver for people to move into a specific village.  Older seniors or where perhaps one partner has been widowed, can be vulnerable and we actively encourage family or a family member to get involved in the meetings to discuss the contracts.

Have you heard people say that they wish they would have made the decision to move into a retirement village earlier?

If I had a dollar for every time a resident has told me that I would be retired by now!

What does your role involve on a day to day basis?

I consult to a range of diverse organisations and businesses from land owners, retirement village developers, aged care providers, builders and valuers. Very broadly, I produce detailed marketing research and reports in the project feasibility process, I endeavour to get involved in the design stage to ensure the project will sell and I develop marketing plans and budgets in consultation with the client and other consultants such as graphic designers, web developers and advertising agencies. Then, if required, I manage the implementation of the plan. This process also includes advice on the terms of the residency agreement from a marketing perspective, village budgets and the myriad of considerations which can affect the successful sale of a village.

I am a licensed real estate agent and a member of a number of industry related associations such as RVA, ACSWA, REIWA and FIABCI. I manage a team of eight staff including four salespeople and a network of Accredited Agents I have trained that market and sell the many villages our clients operate.

What has got you excited at the moment re the industry?

The emerging technologies available to market new villages to a diverse range of people. In roads into the affordable housing market. Innovative design and use of building materials by architects to ensure sustainable homes in the future. The wider community is embracing sustainability and eco friendly design features and they are expecting that their future home in a retirement village will have these features.

What do you enjoy doing (e.g. hobbies sport) that people might be surprised to find out about you?

I used to claim my wife Diane and I were born again ballroom dancers although the dancing is unfortunately well down the pecking order with the birth of grandchildren and a bit of travel. We really enjoy four wheel driving and getting to some out of the way places. I’m also a keen surfer who would like to spend more time in the water than I do at present.

News Monitor No 45

Brian Robinson

This week we meet Brian Robinson, a stalwart and has a long and varied involvement in the retirement village industry. Brian has been a village manager, general manager operations of The Zig Inge Group and is currently an accreditation survey team leader for the Retirement Village Association (RVA).

Can you tell us something of your background and how you came to be involved in the retirement village industry?

When aged in my 30’s and 40’s, I held senior positions in both local government and association management. After working excessively long hours under significant pressure for over fifteen years, I became self-employed, and established a number of businesses and a property development company.

The latter proved unsuccessful – due mainly to the dramatic slump in the commercial property market in the early 1990’s – and in any event, I was keen to return to an administrative or management position.

I was successful in applying for a position of a retirement village manager with the RBD Group – and four years later, was appointed as General Manager – Village Operations for The Zig Inge Group. I held that position for eight years, until my early retirement from full-time employment three years ago.

As an accreditation surveyor, can you explain your role and the relationship it has with the RVA?

As the lead Surveyor for an accreditation survey of a retirement village, I am required, with the assistance of another surveyor, to make an initial assessment on whether the village being surveyed is fully compliant with each of the standards specified in the accreditation scheme.

This usually requires a detailed examination of documents and records and an in-depth investigation incorporating interviews with both residents and staff.

I operate on the principle that it is absolutely crucial that every Surveyor makes every effort to make an accurate and proper assessment and reports accordingly.

This ensures that I comply with my responsibility as a Surveyor, and increases the likelihood that the outcome of surveys I conduct are entirely consistent with those conducted by other surveyors. Villages should expect the same outcome from a survey, irrespective of the two surveyors appointed to form the survey team.

Within two weeks following a survey, I compile and submit a detailed Survey Report, which is then considered at the next monthly meeting of RVA’s National Accreditation Committee.

If the Committee determines that the village in question is not compliant, the village is required to take certain action within a designated time frame and I am then also required to obtain evidence of same and to prepare a Supplementary Report for submission to the RVA.

What future challenges do see accreditation facing?

A significant increase in number of villages achieving and maintaining accreditation and having the whole industry embrace the scheme rather than it being effectively confined to members of the RVA, is by far the greatest and most urgent challenge facing the accreditation scheme.

In my opinion:

-          this will only be achieved with a push from residents of non-accredited villages, which in turn will only occur if those residents understand the benefits of the scheme and appreciate the safeguards to their village and to their way of life, which accreditation provides, and

-          the on-going success of the accreditation scheme, and the awareness and appreciation of the scheme by potential residents and their families is fundamental to optimising the number of people over the age of 55 or 60 who choose to live in a village.

What do you believe a retirement village should consider when applying for accreditation?

If a village (management, staff, and residents) properly considers how best to utilise this most economical opportunity to obtain an independent assessment of it’s management and operation (as assessed against designated standards that are considered benchmarks for the industry), it is likely to provide enormous benefits to the village and peace of mind to all concerned.

What do you believe are the benefits of retirement villages becoming accredited?

Without a doubt it is:

(i)       the opportunity for village management to obtain an independent assessment on whether or not it is fully complying with industry benchmark standards for the administration, management, and operation of their village, and

(ii)     affording residents of villages the peace of mind by knowing that their village is being managed and is operating in accordance with those industry standards, as all residents have a very significant financial and lifestyle investment in the village.

In my experience, many within the industry will assert that the prime benefit of accreditation is to assist in the marketing and sale of village apartments and units. There is no doubt that if a village is accredited, this fact should feature prominently in any promotional and sales material, but there are many reasons why this should never be seen as the prime motivation to obtain accreditation.

Do you see any common trends when conducting surveys of villages?

A very high level of satisfaction by residents immediately springs to mind as the most common aspect of villages surveyed. Almost invariably, residents interviewed assert that ours is the best and also we should have moved in earlier.

When you are not undertaking surveys for the RVA, what other roles keeps you busy?

As I am now officially retired, I find time to attend the local gymnasium every few days, a weekly game of golf and attend learn-to-draw classes. I also spend some time in gardening and home renovations.

However, I like to keep busy with casual work. I have undertaken a degree of consultancy-type work over the past three years, and at present, am called upon quite often to drive a light truck for a business owned by my son and occasional interstate bus driving. A number of other opportunities for me have become available and are being investigated.

Do you have any general comments on the role you play in the industry?

One of the key elements which will ensure the future success of the accreditation scheme is the competency, dedication, knowledge and skill of accreditation surveyors and a commitment by each and every one of them to be thorough in their evaluation of a village and accurate in assessing compliance or otherwise.

I am therefore very pleased to have the opportunity of fulfilling what I regard is an extremely important and vital role within the retirement village industry and hope to be able to do so for many years to come.

News Monitor No 43

This week we meet Nick Carter, National Director, Retirement Living & Aged Care Corporate & Commercial Banking at Bankwest.

 

 

 

 

 

 

 

 

 

Nick Carter, National Director, Retirement Living & Aged Care Corporate & Commercial Banking

Can you tell us a bit about your background and how you came to be involved in the banking sector?

 

I am an Adelaide man who entered mainstream banking as a fresh faced 18 year old straight out of high school, firstly working for Westpac throughout SA and the NT and then to a regional bank prior to moving to Bankwest. I have been in my current role with Bankwest as National Director Retirement Living & Aged Care for the last two years. I have been a career banker for the last 30 years working in many varied roles and locations. I became involved in lending to the retirement and aged care sector via Adelaide Bank, who owned and managed a number of retirement villages under the Cooperative Building Society banner and over 10 years gained vast experience in these sectors. I am now responsible for managing a dedicated national team of retirement lenders across the country for Bankwest. I am fortunate to work for a Bank who is committed to the retirement and aged care lending sector.

What are some of the benefits retirement villages bring to their wider communities?

There are a lot of positives for both the resident and community in general. Retirement living allows residents to keep their independence and dignity and allows them to become engaged and integrate in the wider community through various activities that they would not necessarily have done if they remained in their own home. It also gives peace of mind to their children that their parents are in a safe and secure environment and there are no ongoing issues with maintaining a residence and gardens. Mixing with like minded residents develops new friendships, promotes a healthier well being for the residents and takes the burden off the health system.

Can you discuss the roles you see retirement villages playing in housing diversity and job creation?

Retirement living offers an alternative option for residents who want to downsize from their current home. The immediate effect of residents relocating is that their under utilised home fills a demand from the residential market. I have been predicting for some time we will see some merging of retirement and aged care services where retirement villages provide “low care” services via community packages. This is already happening to a small degree and will assist in the longer term in taking the pressure off the aged care system. Planning and development of new villages will stimulate the building construction sector and new staff / health care workers will be required to operate the villages.

Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population?

The Government on a State and Federal level are well aware of the ageing population and the implications it will have on the economy, particularly the ever increasing provision of health and social services. In terms of keeping people working longer, they have raised the retirement age and I am sure they will offer incentives to entice us to work beyond retirement age.  The aged care sector is understood by the Government as they provide the bulk of funding, even if it is under funded, but I believe they do not fully understand the role of retirement village living has in assisting the seniors sector and the services villages provide. This could be because of aged care coming under Commonwealth Legislation and retirement falling under respective States Legislation.  The RVA needs to maintain its push in raising awareness at Local, State and Federal level as we need to make them aware of the important role the industry provides to the seniors sector.

How well do you think the economy has recovered?

The Australian economy has weathered the GFC better than most countries largely due to the Government stimulus payments and recovery of resources industry, which is driven by China reactivating their hunger for imports of raw materials. There seems to be a level of optimism locally that 2010 will be a better year but there is still troubling signs internationally. A number of countries in the northern hemisphere such as Greece, Spain and Portugal are yet to recover, but importantly the US and China economies are ones to watch as their economic performance has such a major impact on the world markets. Access to finance for the SME market is still not easy for a number of businesses here in Australia and it will take time for the tighter lending restriction and higher cost of finance to start to ease.

Do you think the banking sector will begin to fund further retirement living projects and how can groups best access funds?

A number of Banks still view construction of new retirement villages as pure property lending and have scaled back their financing of property related projects. Bankwest has been lending to the industry for a number of years and we understand it is more than just a property lend, it is also lending to an operating business. We have remained committed to funding this sector even through the GFC period and we are confident of continual growth in our market share throughout 2010.

Groups can best get an idea whether they are able meet finance requirements by speaking with the banks who are continuing to lend to the industry sector.  Bankwest has dedicated lending specialists across the country and with our expertise we are able to advise whether a project or acquisition fits our lending criteria. A simple test of your bank is – have you seen them attend RVA seminars and conferences and whether they have specific lending policies for retirement villages and dedicated credit people who have the industry knowledge. If the answer is no, it will make the finance process more frustrating for you.

What challenges do you see facing the retirement village industry in the short and long terms?

In the short term the industry needs to lift its profile and image in the wider community. The perception of retirement villages is generally misunderstood not only by the public but also by Local, State and Federal Bodies. I am not sure if it is the “Retirement Village” branding that creates this misconception but the community needs to be aware of what retirement villages offer and the contribution they make to the local area and society.

The media has not presented the positives of retirement living, rather the negatives and it is usually only when an incident arises does the sector get coverage.

The concept of a mass of baby boomers relocating to retirement village living is a hot topic, but I am not so sure they are looking to relocate or accept the traditional retirement village concept, they will be looking for something different with design and lifestyle and it is important the industry keeps evolving to meet their expectations. In the short term it is the baby boomers parents who are the main target market.

There is a need for continuum of care or ageing in place and will see the retirement industry become more involved in the aged care sector, requiring operators and qualified staff who are experienced in healthcare and aged care sector.  We have already seen the successful integration of community packages into retirement villages and demand will continue to grow. The RVA will need to ensure they interact with aged care associations and levels of government so they have a voice that can be heard and respected.

News Monitor No 42

This week we meet Bob Browne, Chair of the National Accreditation Committee (NAC).

Can you tell us something of your background and how you came to be involved in the retirement village industry?

In 1986 I was appointed Strata Titles Commissioner for NSW and given the task of reporting to the NSW Government on appropriate regulation of retirement villages. After reporting to Government, I developed, in consultation with the industry and consumers, the NSW Retirement Village Industry Code of Practice and the Retirement Villages Act, which started in October 1989. I was appointed as the first Tenancy Commissioner in NSW with responsibility for the implementation and operation of the retirement villages and residential tenancies laws.

As Chair of the National Accreditation Committee (NAC), can you explain the role of the committee and the relationship it has with the RVA?

The NAC is an independent of the RVA. Although the NAC might have members who are also members of the RVA, it is an independent committee established under the Australian Retirement Village Accreditation scheme (ARVA). Under the scheme, which was developed to promote and enhance quality assurance and best practice standards and procedures, the NAC decides whether or not a village complies with the ARVA standards.  To get to make its decision on accreditation for villages, the NAC assesses and reviews the reports of the independent and qualified retirement village surveyors against the standards adopted by the accreditation scheme.

How does the NAC do this assessment? Well, the committee comprises me as chair with up to two representatives of each State as well as a consumer representative (a resident in a retirement village). We meet by teleconference every month for about two hours. Before the teleconference, each NAC member gets a copy of every survey team’s report to be considered at the meeting from the ARVA secretariat. At the meeting I lead the discussion on each of the survey team reports and if the NAC is satisfied that the standards have been met, accreditation will be approved. It is not a rubber stamp process, but one where the expertise and experience of individual NAC members are used to ensure that the survey team reports are proper assessments in accordance with the scheme standards.

What is your philosophy regarding accreditation?

Accreditation is an important program for an industry such as the retirement village industry that gives leadership to industry participants, including developers, operators and importantly users. Properly administered and implemented, an accreditation program will ensure and enhance quality assurance and best practice standards and procedures.

What future challenges do you see accreditation facing?

The most significant challenge is to provide a scheme that is adopted across the industry. To have an effective and veritable scheme it needs to have the confidence of the industry, including consumers as well as Government. To do that we need to ensure that the NAC operates independently and timely and that all villages participate by attaining and maintaining accreditation.

What do you believe a retirement village should consider when applying for accreditation?

When applying for accreditation a village should see it as a real opportunity to review all aspects of their structure, culture, practice and management against the 27 standards that have been adopted for the ARVA scheme.

Is accreditation that hard to achieve?

Having read and considered many, many reports on accreditation it is my view that accreditation is hard work, but good and productive work that gives villages an opportunity for self assessment. From the NAC’s point of view it is directed by the 27 standards included in the scheme and all villages should be able to demonstrate that they comply with all of them.

What do you believe are the benefits of retirement villages becoming accredited?

It is clear from experience and also the stated objectives of the ARVA scheme that accreditation provides a wonderful opportunity to show that the highest standards of quality are being achieved in the retirement village industry.

When you are not chairing the NAC, what other roles keep you busy?

I am involved in family activities including schools and sport. My wife and I together with our daughter 18 and son 15 try to live busy lives. For the past seven years I have been president of the local high school community association and have been involved in the administration and coaching of local cricket and football (soccer) teams. As well, I am chair of the Sydney Cricket Association’s judiciary committee responsible for upholding the Spirit of Cricket for Sydney’s grade and shires association and have been involved in that role for the past 25 years.

Do you have any general comments on the role you play in the industry?

As chair of the NAC I have the privilege to work with committee members who contribute much of their time each month to review the survey team reports and then participate in the monthly teleconference.  Each of them gives significant time and expertise to ensure that we have an effective scheme. I am proud to be involved with such selfless and important contributors to the retirement village industry.

News Monitor No 41

This week we meet Jodie Prosser of Optimum Retirement Services.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jodie Prosser

Can you tell us a bit about your background and how you came to be involved in Optimum Retirement Services?

 

After 10 years in hospitality and operations and a Bachelor of Social Science (Community Development) under my belt I was fortunate to be offered the opportunity to work alongside my mother, Loretta Byers, at Village Care. At Village Care, I spent the majority of the last decade working as an integral part of the senior management team. Together with my husband Mark, Loretta and I organically grew the village management side of the business from three to 40 villages, in four states under management within a space of approximately six years – all by word of mouth and referral.

In this time I developed a strong passion and fondness for the industry; in particular the people in it – residents, staff, operators and service providers alike.  In 2008 an opportunity arose for Mark and I to diversify our interests and Optimum Retirement Services was founded.

There are some people in the wider community who may not be aware of Optimum Retirement Services and what they do.  Can you please explain what Optimum Retirement Services can do for businesses and the services they provide?

Optimum Retirement Services specialises in providing tailored services to the retirement living industry. Our services range from providing purely advisory services on a task by task basis or we can step in as a part of the organisations retirement living team.

Optimum provides experienced services including demographic reviews; assistance with concepts, planning and development of the total village offering; through to the provision marketing, sales and ongoing management support.

Optimum is unique as it provides a very young, dynamic, hands-on service delivered approach.  We have considerable breath of experience and knowledge from working with small operators, not-for-profit organisations and publicly listed companies.  Together we have been involved in the management of over 40 villages and provided services to a further 25 to 30 others during our retirement industry careers.

From time to time when residents have an issue they say to us “well you’re very young, you probably haven’t come across this before”. Our response is simple “having worked with over 6000 residents if only 1% had this issue then we have seen it 60 times and further more if only .01% have had this issue then we have dealt with it at least 6 times before”.  Even if there is the odd issue that may arise where it is a new issue that we haven’t seen before; our extensive experience and sound knowledge of the day to day matters faced in retirement living enable us to make appropriate recommendations for a quick resolution.

As a company, Optimum’s philosophy is simple

To always exceed the clients expectations, be totally honest in our approach and be completely flexible with the services that are to be delivered.

What are some of the benefits retirement villages bring to their wider communities?

Those in the retirement living industry, who know me, know my passion for the industry and the variety of accommodation alternatives we offer to seniors across Australia.

The benefits retirement villages offer are so vast, from the positive impact they are known to have on the residents residing within the villages – physical, mental, emotional or social – to the many jobs created across the nation.  Our industry is becoming more and more recognised as a specialised employment sector.

Possibly the key benefit of retirement living is the ability to provide facilities and services that assist residents to remain independent for longer.  Retirement villages provide the opportunity for residents to remain engaged in the wider community as well as in a range of physical, social, cognitive and emotional activities, all of which are said to assist in successful ageing and remaining independent.

In 2004 the former Federal Treasurer, Peter Costello noted “rebalancing (the health system) to preventative medicine would represent value for money in a health system facing rising costs and an ageing population.” I believe well operated retirement villages can play a large part in the preventative health system of Australia’s ageing population.

How can retirement villages achieve better sales in difficult economic conditions?

I would suggest that the village operators return to the fundamentals of an integrated sales and marketing strategy. This may include the following: spending time reviewing the current process; improve the customer service and communication with prospective clients; provide opportunity to engage with people as they go through the sales process; upon move in make them feel special; building respectful relationships with your residents; focus on resident satisfaction; create allied referral networks and spend time in your local community. These are just some of the fundamental relationship activities that we find are so often the first activities dropped or never started.

Selling retirement is all about the relationships you create and the trust you build – can you imagine how great a new depositor will feel when they deposit at your village and then are at bowls later that week and share their news with a friend who replies “lucky you – my mate moved in there last year and he is having a ball” or what about “oh – yes I have heard all about it from several of my other friends who plan to move in, maybe I should be considering it too”.

I have been lucky enough to work along side some of the industry’s longest serving sales people and operators. Consistently the message has been 20% advertising 80% activity but so often this is reversed.  But don’t think this is a quick fix – as with all relationships it takes time so it is vital that people commit to these activities for a prolonged period.

What challenges do you see facing the retirement village industry in the short and long terms?

Understanding what baby boomers really want and understanding their intrinsic profiles – wealth, social patterns, housing arrangements, etc. It will be vital to stay on top of this as they continue to reinvent themselves, desires and needs.

Also I believe government legislation and agenda will continue to challenge our industry whether it be consumer driven protection, making it difficult for operators to plan financial structures into the future; changes to planning schemes dealing with urban consolidation/medium density housing requirements, and of course the desire to keep people in their homes longer together with the fact the population is living longer, which may also directly effect the financial structures of villages where potentially the roll-over timeframe could extend from current levels.

What do you see as some of the best opportunities for retirement villages into the future?

There are so many differing opportunities that baby boomers inherently provide for the industry, however, the three main areas would include:

-          providing quality affordable accommodation options to the significant population of the baby boomer that is going to be wealth depleted by the time they consider a retirement village

-          building appropriately styled and sized villages in regional Australia. Perhaps considering the satellite structure, i.e. linking a group of smaller villages to a larger service village within the wider district that is responsible for the provision of services

- truly integrating villages with the wider communities – via incorporating cafés, libraries, gyms, retail on-site open to the general public or by offering an appropriate selection of their activities and/or facilities to the wider community

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kerry Lehman

 

News Monitor No 40

Kerry Lehman is a marketing specialist with Brand Partners. She has extensive experience in marketing and sales to seniors, and as a specialist in the retirement village sector, Kerry has created and implemented successful sales and marketing strategies for retirement villages and aged-care facilities across Australia.

This includes a broad spectrum of villages, resorts and facilities, ranging from well-established properties to start-up developments in a diversity of locations.

Can you tell us a bit about your background and how you came to be involved in Brand Partners?

My background is in professional marketing. I understand the client demands and issues.  This career in marketing began when I completed a degree in Business with a marketing major back in the mid – 80’s.  It provided me many opportunities and enabled me to work in a variety of industries, including manufacturing, retail, pharmaceuticals, health and banking.  Prior to starting with Brand Partners, I held an executive role with Adelaide Bank where I had the opportunity to look after marketing, retail banking, insurance, direct banking/call centre and property functions.

I am also a director of the Gannon Lifestyle Retirement Fund and have recently joined the Board of the South Australian Tourism Commission.

We started Brand Partners in 2002 to work as marketing practitioners to provide our clients with the benefit of strategic marketing experience, but with a practical approach.

There are some people in the wider community who may not be aware of Brand Partners and what they do.  Can you please explain what Brand Partners can do for businesses and the services they provide?

In terms of retirement living, the work for our clients ranges from writing (developing) and implementation of a marketing strategy for a new site, through to audits/reviews of developing or established sites that need a set of fresh (but experienced) eyes to identify opportunities for improvement – and everything in between.  Our approach to marketing focuses on enabling our clients to be well prepared, work to a budget and to deliver an INTEGRATED marketing approach – better bang for your buck!

We’ve now had the opportunity to work directly with over 70 retirement living sites nationally, so we can provide our clients with sales and marketing strategies that make a difference in this market.  We’ve worked with the whole gamut: from concept stage, new development, well-established sites, with all kinds of product on offer, with all kinds of contract types.  I was also fortunate a number of years ago, to manage the Accreditation program (for RVA, ACS and ACQ at the time) for a few months, which provided me with tremendous insights.

We also provide marketing services in other industries and work as partners with a range of brands that include both products and services nationally.  We’ve been very fortunate to also work with a variety of business types including public companies, not-for-profits, private organisations, and family businesses, with a strong focus on implementation and results no matter what size or resources.

Brand Partners have had great success this year with their Bloomers sales training program catered for the retirement village industry. Can you outline what makes this particular program stand out from any other sales course and how anyone in working in the retirement village industry will benefit from doing the Bloomers sales training?

Bloomers is unique.  It’s a purpose-built training program created from the ground up just for the retirement living industry. Our purpose is to cultivate the specific knowledge and skills needed to sell retirement living, no matter whether participants are budding sales recruits, experienced (but new to the industry), or crack professionals seeking the tips that will bring a harvest of additional sales results.  And it doesn’t matter whether you are dealing with resales, new sales or off the plan.

At first glance, the retirement living industry seems to be just an offshoot of real estate. Well, it is…and it isn’t. In fact, it’s a much trickier field with lots of hidden thorns to catch the unwary. Achieving sales results in retirement living takes a completely different, perennial mindset. Your aim is to nurture a steady, long-term relationship with the client to achieve – and then keep – a sale. After all, unlike real estate, that sale can wither on the vine at any time, right up to settlement (and beyond, in some states).

Accordingly, I have found that general sales programs just don’t offer the necessary knowledge, understanding or sensitivity to deal with this scenario. Not surprisingly, many operators have been pleading for guidance and we’ve found compelling industry support to develop a specialised retirement living sales-training program to raise a better crop of effective sales professionals.

The Bloomers training program is conducted in a highly interactive and participative learning environment, allowing participants to understand and appreciate all the different aspects of the retirement living sales process.

By the end of the program, participants will have harvested a substantial amount of knowledge. If they then make the commitment to convert this into action, we have no doubt they will blossom and grow into truly high-performance sales professional. Blooming fantastic!

What are some of the benefits retirement villages bring to their wider communities?

Firstly, the key aspect is that the retirement village is, and must be, a part of that community. It is not separate and provides most satisfaction for all when there are active efforts to work together with the wider community.  This is best driven by residents and management.

In terms of benefits, there’s a whole heap, but in particular, the improvement in general well-being and contentedness of the residents provides benefits, not just to those individuals, but also to their families and the broader community.

Many villages integrate tremendously with their communities, offering access to their facilities, e.g. for activities, club meetings, etc.  Over the years, I’ve also seen a great number of residents become more involved with volunteering and other activities and this benefits all.

On a broader level, having a village within the community provides a great sense of security and fits well within the neighbourhood.

How can retirement villages achieve better sales in difficult economic conditions?

The simple answer is that it is not typically a simple answer!  As we address in the Bloomers sales course, it is a whole host of things that add up to make a difference.  However, if I was to suggest one thing, it would be site presentation – making sure that when prospects visit your site no matter what stage of development, it is well presented. This would include an appropriate display home (i.e. appropriately furnished for YOUR target market), making sure its clean and tidy (including at village entry), landscaping, signage, and more.  This does not have to be an expensive exercise – set the budget and work to it.  If you can only afford to furnish one room well, don’t try and spread the funds across a whole house.

I would also work very closely with the current residents (or buyers if you don’t yet have completed homes) to understand why they have bought/moved to your village.  This will always provide terrific insights into how you can attract others.  This is not about number of enquiries, this is about conversions.

What challenges do you see facing the retirement village industry in the short and long terms?  

Perception and Performance.  By this I mean that we must collectively work together to improve the understanding of retirement villages in the broader community.  We have thousands of advocates – we need to spruik their personal experiences and satisfaction to improve the perception of what a retirement village is and what it is not.  One of the most amazing (and pleasing) things I found about dealing with retirement village operators is their willingness to share, to improve for the good of all and this can be further harnessed for wide benefit.

In terms of performance, it is imperative that we all deliver a good “product” (both the physical product, and also the services), that our residents are satisfied. This does not mean that we can please everyone all the time, but we should be able to respond professionally and with empathy to provide communities of content residents.

What do you see as some of the best opportunities for retirement villages into the future?

The biggest opportunity lies in better planning.  We all know that there is large potential for growth in this industry over the years to come, simply from a demographic perspective alone, let alone with improved perceptions to drive greater demand.

If we consider targeting (i.e. who will be our residents – not just by age) and positioning (what will our village provide and be known for) then this will drive much better design solutions, and ultimately more effective marketing campaigns that provide better sales results.  This, of course, leads to a better match between product and resident, happier residents and a good base for future referrals.

News Monitor No 38

Richard Davis is the Director and CEO of Sanctuary Residences Ltd. Sanctuary are part of the LifeCare Residences International Group which also owns retirement village assets in the UK. 

1. Can you tell us a bit about your background and how you came to be involved in the retirement village industry?

My experience is in Marketing, Sales and Operations.  In the seven and a half years at Metlifecare as General Manager Sales and Marketing, my main responsibility was managing the growth of the business by realising the value from Metlifecare’s land bank, increasing resident numbers and maximising the value of Metlifecare’s brand.   I also researched and developed the new 30% Business Model for Metlifecare which is quickly becoming the NZ industry standard.   I was involved in researching current and potential markets, acquisitions and the development of Metlifecare’s long-term strategy.  I have a proven track record in bringing new villages to market and have a strong understanding of developing a product and service delivery that meets the needs of its target market.

2.  You are set to speak at the RVA National Conference, AdvantAge09, can you give us a little preview about what you’ll be presenting?

The Australian retirement village industry is still fragmented with many operators and with this comes a diverse range of business models, many of which could be enhanced to deliver more transparency for potential residents and greater business value for the operator.  I will demonstrate how business value can be significantly improved by focusing on the key value drivers – unit price growth, length of stay and the deferred management fee. I will also take a look at the UK retirement village market, why it is so attractive, and show what LRI is doing there.

3. What are some of the benefits retirement villages bring to their wider communities?

Retirement villages offer older people living in the wider community the opportunity to access facilities that are purposefully designed and accessible.

The ability of villages to provide care allows residents to ‘age in place’ which is in line with Government initiatives, thus reducing public healthcare spend.

Retirement villages also bring housing diversity and job creation to communities.

4. Do you feel governments at local, state and federal levels understand the benefits retirement villages bring to their communities?

At the moment there seems to be a disjoint between federal and state governments and local councils and their understanding of what retirement villages are varies considerably.  The separate state legislation probably doesn’t help the industry.

Migration of seniors to retirement destinations such as the Gold Coast is placing strain on infrastructure such as hospitals in those locations and a burden on residential aged care funding.

5.  Can you discuss the roles you see retirement villages playing in housing diversity and job creation?

Currently there is a potential shortage of approx. 190,000 units across Australasia if penetration rates increase to match the more mature USA market.  As a result of the economic downturn only limited property development is underway which is likely to lead to a significant undersupply of housing, particularly in urban areas.  Retirement villages can help address the shortage of senior housing by developing housing and facilities that are designed to meet the current and future needs of older people, which also releases under-occupied properties for use by the wider community.  They also provide employment opportunities for the wider community.

6. Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population?

They acknowledge and understand the impact this will have on slowing real GDP per person and increased levels of government spending per person, but aside from the fiscal issues I’m not sure they have articulated yet the changes that they will make to ensure we can accommodate a care for the older population in a way that is both socially and fiscally responsible.

7. What challenges do you see facing the retirement village industry in the short and long terms?

Lack of transparency and simplicity with regard to DMF’s.  The financial arrangements are complicated and the variety of different arrangements makes it difficult for the target market to shop around and compare alternatives.

There is a focus on the younger market with independent lifestyle villages when baby boomers should not be the core target market just yet. We should still be targeting their parents.

Increasing need for a continuum of care in villages to cater for the target market expectations.  Issues of staff shortages – healthcare/aged care sector.

Keeping up with the growing needs and expectations of the ageing population while at the same time having to operate across state borders without regulatory and legislative uniformity and without standard contracts and documentation.

A man you can bank on

This week we meet Jim Hazel, chairman of Elders Rural Bank Limited as well as a director of Becton Property Group Limited (and Chairman of Becton Living).

1. Can you tell us a bit about your background and how you came to be involved in the banking sector? 

I drifted into investment banking as a 20 year old and into mainstream banking in the 1980′s, ending as Chief General Manager of Adelaide Bank. Today I am non-executive Chairman of Rural Bank Limited (a joint venture between Bendigo Bank and Elders).

Adelaide Bank arose in the early 1990′s out of a merger of a number of building societies, including the Cooperative Building Society. The Cooperative owned 14 retirement villages, which it had purchased in the 80′s as a diversification strategy.

On conversion to a bank, these needed to be sold…what transpired was the first 94/24 syndicate.  Adelaide Bank took its skills into lending, where it became a major lender to the industry. The villages are now owned by FKP.

 2. You are set to speak at the RVA National Conference, AdvantAge09, can you give us a little preview about what you’ll be presenting?

We are doing a panel, including Andrew Killey (KWP! Advertising), Richard Gates (ANZ Bank), Nieves Murray (IRT) and Peter Inge (industry legend). I have been doing these panels for a while, the aim being to get people talking about the “hard” issues.  And then we will provide the opportunity for the audience to grill senior industry figures.

This year we will be discussing how the industry is organised, whether the current industry bodies are effective enough, whether the industry is consumer focused enough and where the money will come from for industry expansion. And anything else the audience would like to discuss.

3. What are some of the benefits retirement villages bring to their wider communities?

Communities are about people doing and being the best they can.  And we know people in retirement villages are a contented and happy lot. As Groucho Marx said, “Live every day like it’s your last, because one day you’ll be right!”

I also think retirement villages will be community hubs in the future, with all kinds of services provided into the wider community (such as home care for one). We all know the ageing stats.

4. Do you feel governments at local, state and federal levels understand the benefits retirement villages bring to their communities?

No…we must all get better at selling our industry. I have literally just come from an appearance in the Land & Environment Court in Adelaide on behalf of a developer defending a development approval; I can guarantee people do not see the benefits of retirement villages.

5. What challenges do you see facing the retirement village industry in the short and long terms?

To name a few:

1) Improving our image and market position so that we can increase our small penetration rates. We should not underestimate the damage done over the years by tax scheme operators, unsustainable rental models and industry consolidators too focused on financial models.

2) To figure out where care fits into our retirement village model…without it we do not have a sustainable market position in my view.  And as an aside, I don’t think there is just one model.

3) To get the confidence of the financial markets so that they will provide the massive amount of funding required to meet consumer demand in the future.

4) To take our industry’s interaction with all levels of government, and the many regulatory agencies that impact on it, to a level where our voices are heard and we are respected and listened to.

5) To improve the skill base in the industry, predominantly through formal training and development. A perfect job for the RVA!

News Monitor No 37

A sign for the times

This week we meet Fermin Navascués, National Project Manager, Corporate Imaging at Programmed Property Services.

National Project Manager, Corporate Imaging at Programmed Property Services, Fermin Navascués

What is the difference between corporate imaging and traditional sign production?

The process of corporate imaging entails a much wider and more complete approach than thinking of signage as individual signs applied here and there. It’s all about the perception you want to create and considerations need to include the full assessment of your site and an understanding of what the project is to achieve. This may entail painting buildings in corporate colour schemes and integrating sign components, ensuring that all the elements will work together. Other elements may include banner poles to soften the feel of a site or even line marking to ensure car parks work in a safe and practical way.

Our approach will also consider interior signage with can include reception and directional sign systems, feature walls, illuminated poster displays and even fit-out services like corporate furniture, flooring and electrical.

How did you get involved in corporate imaging?

After graduating with a Diploma of Industrial Design and spending a while in packaging design, I moved to work in a corporate signage consultancy that offered the opportunity to develop my project management skills; managing client projects from design through to installation.

In what ways are you able to assist staff and residents at a retirement village?

It’s common to find signs that are not really fulfilling everything that they could and in some cases actually causing confusion. Signs have the ability to strengthen a brand and this means the impression the retirement village portrays. An impressive entrance sign can at a glance create a perception about what a retirement village has to offer.

Programmed’s Corporate Imaging team are happy to meet managers on site, have a walk-through and discuss opportunities for improvement. Consider it exchanging some ideas and really, the first step in planning for improvement. This could be for either a single entrance sign or a whole directional sign program which can be implemented in stages if flexibility is required.

Signage fulfils many functions; providing general information, giving directions, orientating visitors with maps, displaying regulatory information such as speed limits and car parking requirements, and this certainly contributes to safety on site when completed professionally.

On top of this there are a myriad of materials and processes to consider, including permits and certainly Worksafe regulations. That’s why our Corporate Imaging team can make it easy by looking after a project from that first meeting right through to completion, all with one point of contact.

How has the use of signage changed since you began your career?

The main change has been in two main areas; materials & processes, and work place conduct.

Materials such as computer cut vinyl lettering and graphics have overtaken a lot of the traditional sign writing techniques, reducing labour costs.  Additionally, flexible illuminated sign faces are an alternative to the traditional use of acrylic faces for large applications, which are great for windy locations; digital printing now allows even one image to be printed economically and with full photo reproduction; and LED lighting is steadily replacing most neon applications, offering cost savings in power usage and increased durability, and there’s more.

In terms of work place conduct, safe work practices are now a prime consideration. There are regulations controlling working at height, certification of trades people, traffic management and working on footpaths. In fact, we consider ourselves leaders in safety with processes such as safety inductions for all our personnel, risk assessments and work method statements documented for all work and backed by site supervision.

I guess you can see why getting the right advice is important and we can take the hassle out of making the best of your signage project.

What are some considerations people often overlook when thinking about their corporate imaging?

It’s a curious thing but people often think of signs as a panel on two posts that will only cost a couple of hundred dollars. And yet, signage should be seen as an opportunity to portray the impression about your institution, business or retirement village in the way you would like to be portrayed.

Mostly, signs are placed without a strategy in mind. We think about what happens once people have found you; where you want them to park, how they know where to go from the car park and do this safely.

It’s about organising information on a sign in a way that is instantly understood. People will not take in a clutter of signs with confusing directions, warnings and excessive information.

The other thing is specifying materials and processes fit for the purpose that allows future maintenance and servicing.

What kind of products will we see in the future regarding corporate imaging?

LED (Light emitting diode) signs are one of the latest innovations for illuminated signs and are ideal for programmable messages on signs. Messages are easily programmed from your computer to display as many promotional messages as you like, whenever you like.

We also keep adopting improvements that are not immediately evident but increase durability such as pre-galvanised metal structures and ceramic clear coating to resist vandalism and allow cleaning off graffiti.

It’s a funny thing but we are even going back in time fabricating a beautiful three dimension school crest in traditional architectural metal but we are fitting it out with LEDs to create a back-lit hallow effect.

News Monitor No 36

New tool eliminates guess work for developers

Anyone who attended the RVA industry forums earlier this year understands the importance of solid information when considering your next retirement village project. RVA member and key note speakers at AdvantAge09, this year’s RVA National Conference, MacroPlan Australia has developed a new tool, unique to the industry.

The Retirement Index aimes to help developers eliminate the “guess factor” when choosing their next site location.

This week we speak with MacroPlan’s Retirement and Aged Care General Manager, Wayne Gersbach, who explains the origins and benefits of this new tool.

Q: How did you identify a need for this product?

MacroPlan Australia has a long history of providing research, analysis and validation advice for stakeholders of the retirement development sector. This includes our quality market demand analysis services, in which we analyse a wide range of retirement indicators.

MacroPlan’s Retirement and Aged Care General Manager, Wayne Gersbach

However, in recent years we have found that some of the indicators we track often given conflicting results (i.e. one indicator will be saying the market is going up, while another says it’s going down). This is due to the volatile nature of the market, first during the residential property and economic boom and now the GFC. From discussions with the industry, we saw the need to distil the various indicators down into a single score or index to remove the confusion and support effective decision making by developers, investors and other key stakeholders in the sector.

Q: What will it do for developers?

It provides developers with a range of benefits:

• It removes the confusion of research by combining a range of retirement indicators into a single score or index;
• It tells the developer which locations have the right mix of characteristics to be suitable/attractive for development/investment;
• It’s a comparative tool, with the results of a particular location compared to adjacent locations and the broader region;
• It is a spatial tool, enabling the results of the index to be map and “Hot Spots” to be identified;
• It can also tell the developer why an area is particularly attractive (i.e. what mix of characteristics). This can support the product type and price point decisions, as well as the marketing strategy for a development.

The Retirement Index is a powerful tool that can be used at every stage of the development process:

• It can assist in site selection and comparison;
• It can assist in product mix and price points decisions;
• It can inform marketing strategies and approaches; and
• It can used to review underperforming assets.

Q: What do you feel makes this unique compared to traditional methods?

The Retirement Index is more effective in terms of distilling key analysis into a form that is simple easy to communicate (maps, charts, tables) and use as the basis of key strategic decisions (site selection, product type and price, marketing, resource allocation). It also enables for different sites and locations to be compared and contrasted on their merits.

Having said that, the Retirement Index is designed to support and compliment traditional methods. Many of our clients engage MacroPlan to undertake traditional assessments and get us to use the tool to help communicate findings and support strategic decisions. Similarly, many clients who have engaged us to use the tool, have then sought us to do a traditional analysis. The advantage of both approaches is that much of a data research and analysis work undertaken for one, can immediate input into the other, saving the client money and time. Where the Index comes first, it also enables MacroPlan to undertaken a more tailored and targeted traditional assessment, again providing cost benefits to the client.

Q: How does it assist with Marketing?

The big questions regarding marketing are, one, where to market and two, how to market? The Retirement index is designed to answer both of these questions.

The spatial nature of the Index outputs means marketing resources can be effectively allocated. It also enables for location-specific marketing (flyers, local papers) to be employed effectively as the locations where prospective village residents are likely to come from are identified.  Also, by including age, income, occupation/skills and housing data into the Index, the most appropriate marketing approach can be identified (e.g. a higher income white collar population is more likely to engage with online and web-based marketing).

We have and continue to work with, key marketing firms to ensure the outputs of the Index support their approaches and strategies.

Q: Every project is different, how flexible is the Retirement Index?

This is perhaps the most powerful part of the Retirement Index – it is tailor to each client, each project and each approach.  The models and programs behind the Retirement index have been built in such a way to ensure that the results are highly relevant to the client. We felt this was critical as every developer/operator has a slightly different business model and approach, each location and site has different characteristics, and every population has different demographics.

We make sure we work with the client in a very collaborative manner, seeking their input and guidance throughout the process so that they own the end results. Key client inputs include:

• The client nominates the locations and helps select the broader region for examination. We then take this and match it up with geographies at which data and information is available
• The client selects the indicators that are relevant to their business/development model. We then match these indicators with available data, often building new variables and indicators to meet the clients requirements
• The client ranks the indicators from most to least important to their business/development model. We then use their rankings to weight the indicators.

The MacroPlan approach recognises that while we have strong technical and research expertise, it is the developers and operators who are at the coal-face of the sector. Only by working together, in a collaborative approach, can we ensure that the Retirement Sector will reach its full potential and meet the needs of future retirees across Australia.

News Monitor No 35

This week we meet Aaron Gadiel the Chief Executive Officer of the Sydney-based Urban Taskforce which is a non-profit organisation representing Australia’s most prominent property developers and equity financiers. The Urban Taskforce provides a forum for people involved in the development and planning of the urban environment to engage in constructive dialogue with both government and the community.

Urban Taskforce CEO Aaron Gadiel

Can you tell us a bit about your background and how you came to be involved in the property sector?

In 2007 I completed an eight year stint as chief of staff to various state government ministers – covering the roads, housing, energy, regional development, mineral resources and ports portfolios.

I’m a property and planning lawyer, with some economic training thrown in, so once I made the decision to leave government, the Urban Taskforce was the obvious place for me to go.

You are set to speak at the RVA National Conference, AdvantAge09, can you give us a little preview about what you’ll be presenting?

Retirement villages, like developers, are surrounded by government regulation.  Government policy decisions can make or break the industry.  As our population ages, it is more important than ever before that the industry does everything it can to make government understand what needs to be done (and not done) to get things moving.  I’ll be talking about how government works and how they think.  I’ll focus on what appeals to them and what worries them.

What are some of the strengths retirement villages bring to their wider communities?

New retirement villages are a crucial part of the fabric of local communities.  If we don’t see more retirement villages developed, our communities will bear a huge social cost.  I don’t think we’re prepared for the dislocation that will be caused if there aren’t local, affordable, retirement villages for people to move into to retain their sense of community and support networks.

Do you feel governments at local, state and federal levels understand the benefits retirement villages bring to their communities?

Government is a many headed beast.  Clearly some people in government do – typically those that have the most direct responsibility with responding to the challenge of an aging population.  However, for every person in government that do understand an issue, there are probably five who have no understanding whatsoever.  Regretfully, those five people may sometimes have the power to frustrate good policy.

Can you discuss the roles you see retirement villages playing in housing diversity and job creation?

Retirement villages can reduce the strain on the health system by giving individuals an extended period to live outside a nursing home.  Their construction and operation create real jobs that boost economic activity.  For every $1 million spent on construction, 27 jobs are created throughout the broader economy.

Do you feel governments understand and are taking the correct actions regarding Australia’s ageing population?

I don’t think we’re seeing nearly enough development of new retirement villages, and much of the blame for that must ultimately flow to government.  After all, property development must surely be the most heavily regulated market in Australia.  While there have been some improvements in some areas in recent years, we’ve yet to see a passionate push for the development of new retirement villages on a grand scale.

What challenges do you see facing the retirement village industry in the short and long terms?

The industry needs to build more widespread community awareness of the key (and increasing) social role that retirement villages play.  The benefits of modern newly developed retirement villages have got to be strongly communicated.  By selling the industry to the community, government will inevitably follow with support.