$400M+ Japara deal coming finally: US / Hong Kong money enters the Australian market – perhaps

Published on

For what feels like years, there has been talk of big overseas money coming in as bottom feeders to buy up distressed assets in the village and care market. BUPA bought Amity (for over $1 billion) but that was near the peak of the market in Sept. 2007. Since then, virtually nothing. But now US giant Blackstone is trying to finalise the purchase of the 35 aged care facility/2,800 bed Japara business via its Hong Kong office. Japara earns between $45 and $50 million per year giving a 12% return on the $415 to $425 million price tag. The land and assets are a bonus. Blackstone is a US based private equity investor, that generally looks to buy and sell in a 3-5 year time frame. Same a CVC did with Amity. While it seemed expensive at the time, BUPA got 96 care homes and 7,000 beds with a total turnover of AUS$344m for its $1.25 billion

Share.