KUALA LUMPUR (Feb 18): Property developer Mulpha International Bhd, through its strategic investment in Aveo Group Ltd, took over the owner and operator of retirement communities Freedom Aged Care Pty Ltd to build on its care offering to elderly Australians.

In a statement today, Mulpha said that Freedom owns and operates more than 1,000 units in 15 retirement communities across Australia in Queensland, New South Wales, Victoria and Tasmania, as well as a development pipeline of 533 units.

The development pipeline includes 387 units in five of the 15 existing villages and a 146 unit site for an additional new village on the Sunshine Coast in Queensland, it added.

Mulpha said the acquisition of Freedom is a key component of Aveo's strategy to increase the levels of care and support services to its residents. This is following the acquisitions of 50% interest in two allied health businesses, Mobile Rehab and The Physio Co, last year.

Freedom retirement communities are unique private care retirement communities under the Retirement Villages legislation, dedicated to delivering unmatched levels of freedom, lifestyle and care with 24-hour nursing available. Its offering is to residents with initially low to moderate care needs, it added.

Mulpha executive chairman Lee Seng Huang said: "This is a significant, long-term investment in building our care offering and is underpinned by Aveo's commitment to grow with older Australians by inspiring greater living choices.

"Post-acquisition of Freedom and with the rollout of our existing development pipeline, Aveo will be operating 95 retirement communities with over 17,000 homes for elderly Australians, making us the largest owner and operator of retirement communities in Australia."

Mulpha owns 26.26% equity interest in Aveo Group according to its financial report 2014.

The acquisition came at the heels of the release of Aveo Group's financial results for the first half of FY16 (1HFY16) ended Dec 31, 2015. Aveo delivered an underlying net profit of A$45.6 million in 1HFY16, an increase of 89% compared to the 1HFY15 result.

Its statutory profit after tax jumped 121% to A$66.5 million, while underlying earnings per security of 8.9 cents increased 85%.

"We are on track to achieve our stated FY16 targets of a return on retirement assets of 6%–6.5%, underlying profit after tax of over A$80 million and a full year distribution of 8 cents per security.

"We have strong momentum across the group and total sales volumes in the second half are expected to exceed the first half. We are in a strong position financially and strategically to achieve our objectives in FY16 and beyond," Lee said.

Mulpha shares slipped 0.5 sen or 1.69% to close at 29 sen, with 150,601 shares done. The company is valued at RM618.76 million.