Bupa to be Australia’s biggest
There have been a couple of acquisitions announced recently in the ageing space including one underway which will make Bupa Australia’s largest private aged care provider.
Image courtesy of Bupa Aged Care
Bupa Care Services Australia’s acquisition of Innovative Care is set make it the nation’s largest private aged care provider.
If successful, Bupa will add 10 residential aged care facilities in Queensland, New South Wales and Victoria to its current 50 homes.
The additional 1114 beds will bring its national total number of beds to 5616.
The Innovative Care homes are a great fit for Bupa Aged Care, said Paul Gregersen, Bupa Care Services Australia General Manager.
“We have spent a significant amount of time considering the available businesses on the market and believe that the Innovative Care portfolio represents the best strategic fit given its high quality and leading reputation for care services in the communities where it operates,” Mr Gregersen said.
Calling it the most significant acquisition in the Australian aged care market for several years, Mr Gregersen said the high quality of Innovative Care’s homes and their industry leading practices would strengthen Bupa’s aged care offering in Australia.
“We will be working with Innovative Care management to carefully transition operations as smoothly as possible to ensure continuity of care for all residents,” he said.
If approved the acquisition is expected to be finalized by mid-February.
Bupa said it would offer employment to all of Innovative Care’s aged care home staff.
The deal also includes plans for construction of additional beds and an option to acquire further land.
Both parties have agreed to not disclose the purchase price of the deal.
Bupa is being advised by a team from Herbert Smith Freehills, which is led by corporate partner Brad Russell.
Mr Russell agrees with Mr Gregersen about the significance of the transaction, which he said was achieved in a tight timeframe.
“This is the first significant transaction in the aged sector for several years and will assist Bupa to build on its strong track record as a provider of residential aged care services in Australia,” Mr Russell said.
New village for Ingenia Communities Group
Elsewhere in acquisitions, Ingenia Communities Group yesterday announced the purchase of a retirement village for $2.8 million.
The 44-unit rental village in Mandurah, Western Australia, is next to another of group’s rental villages, the 51-unit Seascape Gardens property.
This acquisition is similar to Ingenia’s recent acquisition in Dubbo and is in line with the group’s strategy to grow in markets it knows well, said Ingenia Communities CEO, Simon Owen.
“Mandurah is one of our strongest performing markets with our existing village consistently achieving an occupancy rate above 95 per cent,” Mr Owen said.
“We have acquired this village at approximately $63,000 per unit compared to our Seascape Gardens village which was last valued at approximately $82,000 per unit.”
The acquired village, which has been purchased off-market from a broader portfolio in receivership, will bolster the organisation’s portfolio of high performing rental villages generating consistent earnings and cashflow, he said.
Ingenia reports the transaction is expected to settle later this month and will be paid for with existing cash reserves.
Ingenia further reports it is assessing other acquisition and development opportunities in existing markets and expects to announce further investments in the coming months.
