The listed operator, which owns and operates 67 residential aged care homes, announced to the ASX this morning it has entered a binding agreement to acquire the village veteran's two aged care homes Village Glen Mornington and Village Glen Capel Sound, on Melbourne's Mornington Peninsula.
Village Glen Founder and Managing Director Chas Jacobsen said, “We are delighted that Regis will be the new owner and custodian of the Capel Sound and Mornington facilities. We look forward to an ongoing and productive relationship between the parties into the future via our co-located retirement village.”
The Village Glen is the largest retirement village in Australia with 635 villas and apartments. The two aged care homes, which have 170 beds (Capel Sound) and 92 beds (Mornington) respectively, will be purchased for a net price of $35.5 million. Regis will also assume the RAD liability for the homes which is expected to be around $68 million, which equates to approximately $400,000 per bed, in line with the average new bed cost of $400,000-plus.
Village Glen Mornington was opened in 2018, with Village Glen Capel Sound launched in 2014. They had an average occupancy of 96% in Q4 FY24.
Regis’ CEO Dr Linda Mellors said, “We are excited to add these quality homes to our portfolio and broaden our footprint in Melbourne. We look forward to welcoming the residents, families, employees and communities to Regis and ensuring a seamless transition of services.”
Regis said the transaction is "consistent with Regis’ strategy to broaden its residential aged care footprint through acquisition of premium homes".
The transaction, which is subject to regulatory approvals in relation to the transfer of allocated places and other customary conditions, is expected to settle on 2 December 2024. The acquisition will be funded by Regis’ existing cash.
Aged care and retirement living specialist agency Amicum conducted the successful off-market campaign, with Russell Kennedy Lawyers acting for The Village Glen.
Dr Linda Mellors' reaction to the new Aged Care Bill and Taskforce response
