The Australian’s Dataroom section is reporting that an Australian listed company was recently conducting detailed work on Regis with a view to spinning off its real estate assets.
Reports suggest the due diligence happened in March after Regis announced its Half Yearly profits had slumped 50% to $12.1 million – forcing the company to review its acquisition strategy and pause new aged care developments.
As we reported two weeks ago, Regis has put on the market the million-dollar site of its approved eight-storey aged care home at Palm Beach on the Gold Coast.
The Australian estimates Regis’ real estate portfolio is worth around $900 million, but says a plan to buy the business is off the agenda for the time being by the party (and it is not thought to be the other listed providers Estia or Japara.
It forecasts any deals that take place will wait for the end of the year when the findings from the Aged Care Royal Commission are published and there is more certainty around its impact on the sector.
Watch this space then.
