Aged care operators Menarock Life and NZ’s Heritage Lifecare up for sale

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Victorian-based Menarock Life, which is owned by Deloitte Private’s former Chief Operating Officer Craig Holland (pictured right), has put its business up for sale through wealth management group Ord Minnett.

New Zealand aged care and retirement operator Heritage Lifecare, whose CEO is former Estia CEO Norah Barlow (pictured left), is also on the market.

There is also speculation that Australian aged care provider Allity, owned by Archer Capital, will go back on the market yet again.

Menarock Life, which bought its first aged care home in Moama in regional, 638km from Sydney’s CBD, in 2006, has 12 aged care homes with 709 beds in VIC, NSW and TAS, that could be worth more than $200 million.

Mr Holland, who became a director of Menarock Life almost 12 years ago, is Managing Director of Generation Private, a boutique advisory consulting firm that specialises in providing tax, succession and corporate governance services to private businesses and high wealth families. He also is Chairman of BAJLE Group and a director of MediGalaxy Australia.

Menarock Life is forecast to generate $17 million of annual earnings before interest, tax, depreciation and amortisation for the 2022 financial year and $67.3 million of revenue.

Menarock Life, whose CEO is Josh Piper, the company’s former General Manager Information Technology, is pitching itself to prospective buyers as a business with the opportunity to potentially double the number of operational beds through brownfield and greenfield developments on adjacent, owned land.

It owns 93,126sqm of adjacent real estate to existing facilities that is viable for development.

The facilities are 91% occupied and 11 of them are owned by Menarock Life. The company says it has consistently outperformed the market average for-profit occupancy rates, averaging 92.2% from the 2013 to the 2020 financial year.

Australian private equity firm Adamantem Capital acquired Heritage Lifecare, which operates 30 aged care homes with 2,204 residents in New Zealand, in 2018.

Heritage Lifecare bought Christchurch New Zealand operator Golden Healthcare Group and its seven aged care homes and two adjoining retirement villages, in November 2019, making it the third largest aged care provider in the country.

The group is valued about $400 million.

Sales speculation has been circling around the sector since the Royal Commission into Aged Care concluded its final hearing last year, with Washington H. Soul Pattinson making an unsuccessful bid for Regis Healthcare and Calvary and Bolton Clarke’s competing bids for Japara.

Which groups will these latest sales attract interest from?