Japara to sell two aged care properties as it considers Calvary takeover bid

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ASX-listed aged care operator Japara Healthcare, which operates 51 facilities in Australia, is continuing to sell off properties.

It has entered an agreement to sell and lease back Japara Capel Sands residential aged care home in Capel Sound (formerly Rosebud West), 79km from Melbourne CBD.

“The sale proceeds are approximately $8 million net of costs and reflects a yield of 6.4%. The initial lease term is six years and the lease includes three extension options of four years,” said Japara in a statement to the ASX.

Settlement for the sale and leaseback is scheduled for late June or early July.

Japara, whose CEO and MD is Chris Price (pictured above), has also agreed to sell a vacant site at 20 Berkeley Road, Glenning Vale, on the NSW Central Coast, for approximately $1 million net of costs. Japara also confirmed it had settled the $1.6 million sale of its closed aged care centre in Wyong, also on the NSW Central Coast, in April.

Japara said it was still considering the $278 million “non-binding indicative proposal” from Catholic Not-For-Profit Calvary (Little Company of Mary Health Care) in April. Calvary has four public hospitals, 11 private hospitals, 14 aged care facilities and 11 retirement villages plus 12,000 staff.

The offer would see Calvary acquire 100% of Japara’s shares via a scheme of arrangement.

Japara’s shares still have not recovered from a high of $3.34 in October 2015. The share price was $1.11 on Thursday.