The council and Perth-based family owned Hall & Prior Aged Care have exchanged contracts on Blue Haven Bonaira aged care home and independent living units (ILU), with a settlement date set for 1 November 2024.
The sale price for the 59 ILUs and 134-bed aged care facility, which occupies eight purpose-built care houses, including two dedicated dementia homes, was $95 million. That price will be adjusted for liabilities Hall & Prior will assume at settlement, including employee entitlements, refundable accommodation deposits, and ILU entry contributions.
After those adjustments, sale proceeds are estimated to be $26 million.
The sale price was also eroded by known building defects, including bathroom design concerns, drainage and cladding, which Hall & Prior will rectify.
The agreement was endorsed at Kiama Council's Ordinary Council Meeting on Tuesday night, marking the end to years of turmoil and escalating debts (the home lost $660,000 in July 2022 alone).
The sale terms include a $1.2 million deposit, with the remaining amount to be settled in two payments: the first due at settlement and the remainder two years after settlement. The terms ensure that Kiama Council can repay the final $15 million of its TCorp loan.
Hall & Prior CEO Graeme Prior said, “We were attracted to the region as it aligned with our existing care programs in NSW and are looking forward to working with the Blue Haven team and community at large to ensure a smooth transition."
Kiama Council plans to lodge an application with the Industrial Relations Commission seeking to transfer current staff to Hall & Prior Aged Care on terms that ensure they are paid the same wages.
