This article is from the Australian Property Journal archive
MORE than $70 million worth of sales and leasing agreements have been struck in the aged care in Melbourne and NSW, amid growing demand for facilities while construction costs limit the amount of new stock coming to the market.
In NSW, an operator has been secured for the new Highfields Manor Aged Care, located at 1 Highfields Circuit in Port Macquarie, while the Palms Nursing Home, located at 454 President Avenue in Kirrawee, was transacted to IBIS Care Pty Ltd in a deal for over $350,000 gross per bed.
The total value of these two transactions was over $59 million. They were negotiated by Colliers’ Ian Sanders and Chris O’Driscoll on behalf of a private client.
O’Driscoll said there was huge interest in aged care facilities due to the lack of stock nationally.
“With a critical housing supply shortage, against a backdrop of significant immigration and population growth and low residential vacancy rates, aged care should be part of the housing solution, but the cost of construction has limited the amount of new stock coming to market
“However, over the past 12 months we have seen the market gaining momentum, with growth in the number of facilities exchanging.”
Highfields Manor Aged Care is a 107-bed aged care facility over three levels with basement car parking, which commenced operation in July of 2022.
In Melbourne, private aged care operator Infinite Care has secured its first Victorian premises, purchasing a vacant facility in the inner south-east suburb of Windsor for $11.75 million.
The price showed a 16% uplift since the former Estia Health facility last sold two years ago.
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat managed the sale of 241 Dandenong Road.
Tat said there has been a positive trajectory of growth across the aged care sector over the past 12 months.
“The market is experiencing a strong average occupancy of more than 90%, which is giving aged care and seniors living providers the confidence to plan for expansion or upgrades. This drive for growth is also attracting international investors who have been waiting for the right opportunity to enter the market.”
Infinite Care’s founders and joint managing directors, Tony Partridge and Chris Stride the new 60-bed Infinite Care Prahran home at Windsor is expected to open in mid-2025 and will complement its 177 bed home at Knoxfield, which is due to open in late-2025.
