The ASX-listed operator has entered into binding agreements to acquire family-owned OC Health's two remaining aged care homes for $45 million plus a $36 million liability for RADs.
The purchase of Ocean Mist, in Torquay, a seaside town southwest of Melbourne, and Drysdale Grove, a rural township near Geelong, totalling 230 beds, puts the price at just over $350,000 per bed, well below the current cost to build of around $500,000 per bed.
Regis Aged Care Managing Director and CEO Dr Linda Mellors said the acquisition strengthens their footprint in Victoria, extending their reach west of Melbourne into a rapidly growing regional area with increasing demand for aged care services.
"Upon completion, Regis will have added 13 homes and more than 1,700 beds through acquisition over the past two years. We continue to actively pursue further strategic acquisitions that deliver long-term value for shareholders,” she said.
The two home are described as "high quality", having been built or refurbished in the last eight years. OC Health has been in operation for more than 40 years. A third aged care home in Ballarat, the city 110km northwest of Melbourne, was sold to Estia Health in 2023.
Regis has a sizeable war chest to fund future growth. Net RAD cash inflows were $90m in Q1 FY26, compared with $86 million for the entire first half of 2024-25. As of 30 September 2025, Regis’ net cash balance was $99 million, compared with net cash of $192.5 million in FY25.
Once the acquisition is complete, expected on 1 December 2025, Regis will have 74 aged care homes, with approximately 8,400 beds.
Regis shares rose 3% on the news, however the stock is still down nearly 30% from its record high in July. The stock plummeted after the company reported its full year results and said the recent AN-ACC reweighting had it reconsidering plans to open two to three new greenfield development a year.
Regis announced the acquisition of four aged care homes from Rockpool in July for a total $135 million, or $565,000 per bed including RADs. The higher price reflects the newer builds. Morayfield, the oldest, only opened six years ago, and the other three had all been built within in the last three years.
