Approximately 80 people witnessed Lend Lease's takeover of BBC on December 30 in Sydney, delivering management rights to 56 villages and 29 aged care facilities under the Primelife, Fini and Conform brands. Lend Leases new CEO Rod Fehring explained their view of the opportunity:
traditional development is a wasted sector - once a property is built it is sold and gone forever but with villages you share the capital gains forever
it's a unique market where buyers are motivated by other reasons than economics
despite the economic downturn the fundamentals remain the same
Lend Lease Primelife will have $80-$100 million in cash after the transaction with no other player in this position, which will present unique opportunities (and Lend Lease is geared at just 7%)
Departing CEO, John Martin, presented the 2008 results with a net profit after tax of $41 million, which was 19% ahead of forecast. Lend Lease has achieved a great coup, paying just $195 million for 43.2% ownership and management (with fees), not to mention instant leadership of a long-term growth sector.
The Weekly SOURCE
New Aged Care Act – and Plan B co-contribution funding – was achieved just three years to the day from when the sector was called to mobilise
In November 2021, the editorial team here at DCM/The SOURCE sat down and discussed what is the future for aged care. To be blunt, there was no optimism in the sector as operators racked up month after month of financial losses.