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AFM, PGIM exit Queensland retirement village investment early; Stonepeak takes stake

Fiona Lam

/ EdgeProp Singapore

March 5, 2026 8:38 PM SGT

fiona.lam@edgeprop.sg

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Aura's retirement villages in Australia. US private equity firm Stonepeak has taken a 50% stake in the business. (Images: Aura website)

Real estate private equity manager Assembly Funds Management (AFM) and PGIM’s real estate business have agreed on an early exit from their joint financing arrangement on a portfolio of existing and proposed retirement villages in southeast Queensland, Australia — less than two years after their initial commitment.

The two firms had initially jointly invested more than A$70 million ($63.03 million) in 2024 into a portfolio of retirement villages in Queensland, operated by Aura Holdings, and also made arrangements to fund a substantial future pipeline of new villages.

Aura, a Brisbane-based developer and operator of retirement apartments and community facilities, runs about 800 independent living apartments across suburban Brisbane, Toowoomba, the Sunshine Coast, and the Gold Coast.

It is planning to add more than 2,000 apartments over the next five years. Six developments are in the near-term pipeline, while more than 10 are in early development.

Aura has now secured a new institutional capital partner to provide equity funding for the next stage of growth and buy out Assembly Funds Management’s and PGIM’s positions, they said in a joint March 5 press release, which did not identify the new equity partner.

Earlier, Aura announced on March 2 that New York-based alternative investment firm Stonepeak, which specialises in infrastructure and real estates, has taken a 50% equity stake in the business.

The US firm’s investment, together with a committed development facility with senior domestic lenders, totals up to A$1 billion of capital available to support Aura’s extensive development pipeline and expansion plans.

Aura co-founder Tim Russell said, “Stonepeak’s investment gives Aura the runway to accelerate its strategy of adding much-needed, age-appropriate housing in areas grossly lacking suitable downsizing options for locals.”

This is Stonepeak’s second platform investment in Australia and New Zealand’s retirement village sector. In July 2024, it acquired Arvida Group, one of New Zealand’s largest retirement and aged care providers.

Attractive returns with early exit

While AFM continues to believe in the demographic tailwinds for senior living investments, this sale “crystallises an attractive return for our investors, while also allowing us to deploy further capital towards our highest conviction themes”, said Tim Meurer, chief investment officer at the firm.

He added that AFM was thankful for the opportunity to work with PGIM and the Aura team over the past two years and to help position Aura for the next stage of its evolution.

AFM had invested in Aura through its ‘Real Estate Private Equity’ series, and as result of this transaction will be making a significant return of capital and profits to its investors. Distributions to date represent about 50% of the capital in its first fund, Australian Diversified Property Fund 1 (ADPF1).

Meanwhile, PGIM had made its investment through its flagship Asia Pacific value-add real estate strategy.

“PGIM is confident in the outlook for the Australian senior living sector, but believes certain segments of the market will outperform,” said Steve Bulloch, head of Australia for the firm’s real estate business.

“We will look to further increase our exposure for the right opportunities,” Bulloch added.

PGIM is the global asset management business of New York-listed Prudential Financial. Its real estate business is the world’s second-largest real estate investment manager, with US$216 billion in gross assets under management (AUM) and administration as of Sept 30, 2025.

Sydney-based AFM — a partnership between Michael Gutman, the Lowy Family Group, Alceon — creates and operates real estate private equity funds that invest through-the-cycle in a diversified blend of sectors and capital strategies. It manages about A$1 billion in AUM for high-net-worth families, foundations, and institutional partnerships as at August 2025.

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AFM, PGIM exit Queensland retirement village investment early; Stonepeak takes stake

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