Investors of Australia's second-biggest retirement village operator are considering three options to save their investment.

Most large super fund investors in the unlisted Retirement Village Group (RVG) could take action against the manager, sell out of the vehicle, or replace the responsible entity. The RVG is managed by Macquarie Group Limited (ASX: MQG) through a joint venture with Queensland-based FKP Property Group Limited (ASX: FKP).

Macquarie and FKP set up RVG in 2005 with the Zig Inge portfolio. The groups bought the retirement village for $641 million at the market's peak in 2007.

Offshore and local institutional investors complained of substantial paper loss since the fund's inception in December 2007. An investor said, “Our $1 unit was worth 51 cents at June 30, 2010.” The investors put in $850 million for RVG.

In February 2009, two of RVG's largest investors, Retail Employees Superannuation and Hostplus (the hospitality and tourism industry's super fund), filed a claim with the Federal Court in Melbourne against RVG over the acquisition of the Zig Inge Group. After a year, the case was finalized and dismissed by consent.

In 2007, the Zig Inge acquisition was reported to be 100 percent debt funded. Telstra Super and Sun Super are among the investors of RVG.