While the aged care sector is saying it cant make money and wont 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.
ATO plans to charge GST on manufactured home parks scrapped
A concerted effort by the Residents Association of manufactured home parks has headed off the ATO which had planned to impose GST in mobile homes. This would have added 10% to the cost of the purchase of a home