On 7 May, the NSW South Coast Council made the final $14.6 million repayment on its debt to TCorp, the NSW Government's lending body, finally ruling a line under an expensive foray into aged care development.
The repayment clears Kiama Council of a $60 million debt, taken out in 2018 for the construction of the 134-bed Blue Haven Bonaira Residential Aged Care Home.
The home ended up costing $105 million to build, plunging to the Council into financial trouble.
The home lost $660,000 in July 2022 alone and the NSW Government issued Kiama Council with a Performance Improvement Order for financial mismanagement in November 2022.
Perth-based aged care provider Hall & Prior, which has been behind several residential aged care takeovers in recent years, finalised the acquisition of the home, including 59 independent living units, last month.
Kiama Council had an August 2025 deadline on the loan, which had already been extended in 2023. Settlement of the loan returns the Council's Debt Service Cover Ratio to positive territory, satisfying a requirement of the Performance Improvement Order.
Mayor Cameron McDonald thanked the NSW Government, through TCorp, for allowing Council "extended time" to clear the debt.
Hall & Prior, which was recently recognised on IBISWorld's top 500 Companies, has 39 residential aged care homes and in-home and community care programs across Western Australia, New South Wales and the ACT.
Kiama Council retains its Blue Haven Terralong retirement village with 203 independent living units.
