Aging Australians generate investment opportunities

Experiencing the Outback, surfing the waves, enjoying the wine and joining in the grand parades. To many, Australia paints a vibrant picture of youth. But in fact Australia's population is aging.

In 2002, 12.5 percent of the population was aged over 65 and 1.5 percent was older than 85. These percentages are predicted to more than double and triple by 2051 respectively. By that time, one out of four Australians will be over 65 years old. Even looking at the near future, by 2011, 1.7 million Australians will be over 55 years old.

Figures released by the Australian Bureau of Statistics show an increase of about 2 million Australians aged over 65 and about 311,000 aged over 85 from 2002 to 2021.

There is currently a significant shortage of retirement accommodation to meet the needs of an aging population. At the current rate, 135,000 units will be needed by 2011, but this figure may increase up to 225,000 if there are more retirees in the market for specialized accommodation.

For investors, the demographics and statistics point in one direction: there is a great opportunity to invest in retirement living and aged care in Australia.

Australia already has a mature market for real estate investment trusts (REITs), which provides a high degree of regulation and data for investors.

With a market capitalization of listed vehicles valued at around $100 billion and nearly 12 percent of the property listed around the world, according to the Australian Securities Exchange, Australian REITs offers proportionally higher yields.

In fact, in the 2005 financial year, the sector provided returns of 17.9 percent with close to a million listed property trust investors in Australia.

Today, investors have an opportunity to invest in the Cetera Trust No 1, a REIT that will develop and manage retirement villages and aged care facilities in high demand areas in Australia. The trust will be managed by an experienced team with high level management experience in the listed property sector as well as directors in the sectors of financial, accounting, fund management and law.

Investors can be confident of high-level transparency as the asset manager for this trust has an Australian financial services license.

Also, net profits of the trust are linked to the aging population and Australian government subsidies.

www.cetera.com.au; info@cetera.com.au;

Ph: + 61 03 9773 117;

Fax: + 61 03 9773 0144

(China Daily 08/07/2008 page42)