Aged care just gets hotter. Ten days ago aged care operator Japara launched on the ASX and their share value it $2.57, valuing the company at $707M. This is 35% up on its expected $500M valuation. Two months ago Japara was talking about $400M.
This means Japara has done the hard work for private operator Allity, educating investors on value. Consider this; Allity was created just 16 months ago by private equity firm Archer Capital to purchase Lend Lease’s 31 aged care facilities for $270M. Last month Allity also purchased ECH’s 10 SA care facilities for a reported $140M. They now have 43 sites with 3,500 beds compared to Japara with 35 sites and 3,131 beds. So in 16 months Allity has invested $410M and now has business worth approximately $700M, a potential return of $290M.
It is interesting to look at who invested in Japara; they attracted a good mix of institutional investors and wealthy private families. The major investors were:
JP Morgan
National bank
HSBC
Catholic Super Fund
Citicorp
UBS
BNP Paribas
The Sudholz Family
The Myer Family
Robert Peck and Yvonne Van Hartel
The Reid Family
The Dean Family
The Klempfner Family