The US-based private investor has reportedly contracted investment bank Barrrenjoey to see if the residential aged care business can be sold for a sizeable profit or floated on the ASX.
The Australian, which reported Bain Capital was looking to sell Estia Health Care in December last year, hypothesizes the private investor may run a dual-track process in 2026, considering both a sale and a listing of the business that now operates over 80 aged care homes in South Australia, Victoria, New South Wales and Queensland.
The Bain Capital acquisition valued Estia Health, which then had 75 aged care homes, at $280,000 per bed. The cost to build a new aged care bed currently sits at around $600,00 to up to $800,000 depending on location and quality, and a bed can now be valued at $750,000 without needing approval.
With a rapidly ageing population, residential aged care homes in many areas are full. The Weekly SOURCE reports today there are nearly 2,500 elderly patients in hospital beds medically ready for discharge but stuck in hospital due to a lack of aged care places – the equivalent of 21 full 120-bed aged care homes.
StewartBrown, the renowned aged care accountants, stated in January "providers financial results are expected to improve for the remainder of FY25 due to increased funding levels."
The reforms in the new Aged Care Act include additional funding streams through being able to charge higher Refundable Accommodation Deposits (RADs) without requiring approval, RAD retention, and increased consumer contributions for non-clinical care.
It might be Barrenjoey recommends listing Estia Health, with Bain Capital having already floated Virgin Australia, as the value of aged care beds is only going to increase.
Estia Health states it cares for over 10,000 people annually, as at May 2025.
