Lend Lease Aged Care has two buyers

While the aged care sector is saying it can’t make money and won’t build more beds, Lend Lease has two private equity firms vying to buy its 31 care facilities at a rumoured $200M+. Archer Capital is said to be ahead of Pacific Equity Partners in the deal. The question is – how are they going to achieve more value/return than an experienced operator? The usual concept is that a private equity group will buy cheap, cut waste, energise the business and then sell within about three years.