Blue Sky Private Equity invested around AUD20 million for a minority stake in retirement community developer Oak Tree Group.

Oak Tree Group is an operator and developer of retirement care homes in regional locations. The funds raised from the Blue Sky Private Equity investment will go to the operation and development of at least 2,000 home units for retired people over the next five years. The location of the units are spread across six regional areas.

Andrew Champion, Blue Sky Private Equity Sydney office director, advised media that the Oak Tree Group investment decision mirrored the future need of the retirement-living industry in Australia.

"We have an ageing population and there is a real shortfall of supply in retirement products and services. Oak Tree operate at the affordable end [of aged-living options] and in regional locations. We like that niche," Champion said. "They have nine village projects underway. There are plans to develop three to five new villages in six regional hubs each year in perpetuity," he says.