The Australian Financial Review last Friday reported infrastructure investor Pacific Equity Partners (PEP), part owner of land lease communities owner Serenitas, has made a non-binding offer for Australia's largest aged care provider, Opal HealthCare.

Morgan Stanley has reportedly run a two-part auction for a 50% stake in the operator, which operates 102 aged care communities, with bids due in early September.

PEP's Secure Asset Fund II is led in part by Paul Foster, who was on Opal HealthCare's board for several years, and was a key player in AMP Capital's investment in the aged care operator.

Jeffries Australia has been advising PEP, the AFR reports.

In July, we reported that Opal HealthCare, which is owned by Singaporean GK Goh Holdings and AMP Capital Funds, had hired Morgan Stanley to find a buyer.

In 2023, Opal HealthCare reported revenue of $1.24 billion, and a loss of $65 million. The previous year, the company reported a loss of $55 million on $941 million in revenue. The 2023 revenue included $852 million in Government fees and subsidies and another $203 million in resident fees.

Originally Domain Principal Group, Opal HealthCare was owned by AMP Capital Investors. In 2013 AMP sold 47.6% of the company to Asian tycoon Goh Geok Khim's Singapore-listed GK Goh investment company. GK Goh considered selling a portion of its stake in 2017, but held on.

A spokesperson for Opal HealthCare told The SOURCE:

"We have no comment to make on recent speculation in the press about a possible change in part of Opal HealthCare’s ownership structure. We are focused on serving our residents with the best of care, and bringing joy to those we care for with compassion and respect.”