ASX-listed provider Estia Health has acquired four operational aged care homes and two development sites from Premier Health Care Group, the aged care business established by sector veterans Florence and Viv Padman in 2017 (pictured right), who now are selling up.
Estia anticipates an outlay of around $62 million for the four operating homes, and $10 million for the two sites under development.
This equates to $151,000 per bed plus possible debt.
The four homes – two of which, The Carlyle on Cross and the Claridge, and two of which, The Menzies and The Waterford, are in south-east Queensland – will add 409 resident places to Estia’s portfolio; the two sites under development in Adelaide could add a further 160-179 beds.
According to Estia Health CEO Sean Bilton (pictured, far left), the homes are “of the highest quality” and provide Estia with the opportunity to finish their ramp-up.
“Each home has been built or refurbished since 2017 to the high standards that have come to be the mark of a Premier home.
“The homes are aligned to our existing successful operating clusters and have demonstrated strong occupancy and operating performance, despite the huge challenges arising from COVID-19. I look forward to welcoming the residents and employees to Estia Health,” he said.
The listed provider reported a Net Loss After Tax of $52.4 million for the 12 months to 30 June 2022, which it ascribed to COVID-19-related costs and bed licence amortisation charges.
The early departure of the Padmans, who opened The Waterford five years ago as their first Premier facility, indicates that the aged care sector has proven too hard to warrant their original growth plans.
