This article is from the Australian Property Journal archive
STOCKLAND has formed a strategic partnership with Opal Aged Care, a company owned by AMP Life and Singapore's GK Goh Holdings Ltd.
Opal Aged Care, formerly Domain Principal Group, was renamed after GK Goh bought a stake in the company in August last year for $136.7 million.
As part of the strategic partnership, Stockland will sell four aged care facilities to Opal Aged Care for $25.6 million, including $4.5 million of deferred payments. This is below book value at 31 December 2013, reflecting the upcoming demolition and redevelopment of the Cardinal Freeman site.
The four properties are in New South Wales and Victoria with a combined total of 366 beds. The facilities are located within the grounds of Stockland’s retirement living villages at Cardinal Freeman at Ashfield in Sydney’s inner west, Lourdes at Killara on Sydney’s North Shore, Gillin Park at Warrnambool in south-west Victoria and Salford Park at Wantirna in East Melbourne.
“We undertook a detailed search to find a well-established, high quality operator capable of taking over this area of our business,” Stockland CEO retirement living Stephen Bull said.
“The provision of a continuum of care is an important part of our retirement living offer to residents and we are pleased to continue to offer this service at four existing facilities located within our villages.
“We’ll also work with Opal to pursue the development and operation of specialised aged care services where the land and opportunity exists at other sites within our Retirement Living portfolio,” Bull said.
Opal’s managing director Gary Barnier said this acquisition has given the company an opportunity to strengthen its position as a specialist aged care provider.
Following this deal, Opal will own and operate 60 aged care residences for 4,900 residents and employing more than 5,500 staff.
Stockland owns and operates 62 villages comprising more than 8,200 units across five states and the ACT. It has a development pipeline for a further 3,390 units.
Stockland CEO Mark Steinert said the group remains focused on implementing the strategy to manage and grow the retirement living business to deliver sustainable profit growth.
“This partnership to provide a continuum of care complements the engaging independent living environments that we create in our retirement living villages,” Steinert said.
Property Review
