How the West was won: BaptistCare’s big acquisition
BaptistCare has confirmed the acquisition of 10 Western Australian retirement villages from Keyton.
The Not for Profit’s transformation from a state-based provider into a national aged care and retirement living organisation has taken another major step.
BaptistCare has confirmed the acquisition of a portfolio of Western Australian retirement villages from Keyton, which The Weekly SOURCE reported exclusively were for sale in September 2024.
The 10 villages – eight in metropolitan Perth and two in Mandurah and Bunbury – include 1,639 homes and 2,080 residents. BaptistCare will take ownership before the end of the year, with a transition period running through to June 2026.
The transaction was brokered by Cushman & Wakefield Australia and New Zealand CEO Noral Wild, with David Curtis and Louise Burke.
Sale price commercial in confidence
CEO Charles Moore describes the acquisition as a “strategic milestone” that will increase BaptistCare’s retirement living portfolio to 45 villages and over 3,700 units, positioning it among Australia’s top 10 operators.
“This is evidence of being stronger together,” he exclusively told The Weekly SOURCE. “Scale matters – it allows us to deliver more sustainable, efficient and integrated care services.”
While the price is commercial in confidence, Charles said BaptistCare had acquired the portfolio at a 25-35% discount to replacement value, equivalent to roughly 40-50% of the median local house price.
With the median house price for a two-bedroom unit in Perth around $600,000, The Weekly SOURCE’s back-of-the-envelope calculations suggest the deal value is in the order of $300 to $400 million.
Strategic WA deal boosts scale and density
The WA portfolio complements BaptistCare’s existing 10 villages, 12 aged care homes and three home care hubs in the state and follows smaller acquisitions in Sydney earlier this year.
Charles said the move underscores BaptistCare’s model of “sustainable growth” – a balance of organic development and targeted acquisitions – supported by a $1.5-billion development pipeline.
“We have capacity to continue to acquire assets and portfolios that make strategic sense – across all elements of our infrastructure,” he stated, pointing to the opportunity to deliver home care into villages at scale as a key driver of the deal.
Keyton to “focus on growth strategy”
For Keyton, the sale comes as the operator continues to reshape its portfolio and ownership structure, with Lendlease’s 25.1% stake still on the market and Scape, Aveo's owner, reportedly the only contender.
Keyton CEO Nathan Cockerill said the WA divestment allows the privately owned operator to focus on growth on the eastern seaboard.
