Japara settles $39M Riviera Health acquisition – “at little to no cost”

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Japara says the purchase, after it has reconfigured the properties, has basically recovered its cost.

As we reported here, the listed provider had purchased the portfolio of four aged care facilities at Brighton-Le-Sands, Chatswood, Doonside and Wyong, plus a closed 125-bed aged care facility in Toukley they plan to redevelop or sell; 4.3 hectares of development land in Wyong and 507 bed licenses.

Japara has reconfigured all four homes’ multiple bed wards into single rooms and also been re-accredited by the Australian Aged Care Quality Agency (AACQA) for the Doonside and Wyong homes which had previously been sanctioned by the Department of Health.

They are also proceeding on plans to build another facility at Belrose and on the Wyong land for a total of around 400 extra beds.

Japara CEO Andrew Sudholz confirmed the acquisition has proved to be “exceptional” value.

“We have effectively purchased four operating homes at little to no cost given the expected cash receipts from refundable accommodation deposits in the new Brighton-Le-Sands home together with the value of surplus licenses and other real estate acquired,” he said.

The provider now owns 48 aged care homes across five states with a total of 5,457 bed licenses.