This article is from the Australian Property Journal archive
REGIS Healthcare has acquired a portfolio of six aged care facilities from Masonic Care Queensland for $163 million.
The Masonic portfolio comprises 711 places across six aged care facilities, namely:
– The Lucinda, Musgrave and Griffith Aged Care facilities, co-located in Sandgate, Brisbane – 441 places,
– Morinda Aged Care, Cairns – 123 places,
– Karinga Aged Care, Townsville – 127 places
– Tin Can Bay – 20 places.
In addition, there is 26,000 sqm of surplus land with development potential for 244 units.
Regis Healthcare CEO Ross Johnston said EBITDA is currently below the average level of Regis operations, but the portfolio will benefit from the application of the Regis management systems and processes. The acquisition is expected to be earnings accretive in FY17.
“The facilities currently have a RAD pool of $50.1 million, with 29% of residents having paid a RAD and an average RAD of $246,000. Regis anticipates potential RAD uplift of circa $50 million.
“In particular, the Brisbane and Cairns facilities are a strong fit with the Regis operational network, where the company already has a significant presence,” he added.
Following the acquisition and the completion of the Caboolture and North Fremantle developments, the number of Regis places will grow to 5,968 in June. By the end of FY19, following the execution of the existing development pipeline, Regis will have circa 6,800 places.
Due to one off transaction costs including stamp duty, integration and acquisition related expenses, there will be a reduction in FY16 EBITDA of $13m-$15m and NPAT of $9m- $10.5m.
Australian Property Journal
