Aveo's existing retirement unit sales slump 42 per cent

 

Aveo's existing retirement unit sales slump 42 per cent.

Melbourne age reports:-

"Controversial listed retirement village owner Aveo has reported a 42 per cent dive in sales of existing retirement village units while the company conceded it had done little to improve the financial outcomes for the thousands of its residents still on old and allegedly unfair contracts.

The sale slump came after a joint Fairfax Media and Four Corners investigation in 2017 uncovered a litany of questionable business practices at Aveo including churning of residents, fee gouging, safety issues and misleading marketing promises, such as safety and emergency services.

Mr Grady said the declines were driven by "negative media sentiment" about the retirement sector and the drop off in existing residents willing to recommend buying an Aveo unit to their family and friends.

"It’s not that they’re not happy, they’re just very cautious about making that recommendation to friends and family," Mr Grady said.

In response to the media reports, Aveo sunk $3 million into advertising to salvage its brand and another $8.5 million on advertising on new development projects. It expects to spend $17 million by the end of year on advertising.
During the first half of 2018, the company's profit contribution from its established retirement business fell 25 per cent to $26.4 million."

Aveo's existing retirement unit sales slump 42 per cent.

Read the full story here:- Aveo sales slump

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