Following on the acquisition by Bupa of the 1,114 beds Innovative Care Group for $225 million on Christmas Eve, speculation has been renewed that Lend Lease is placing its 30 aged care facilities on the market. Previously a $200 million price tag has been discussed.
A number of private equity firms have been named as potential buyers including Blackstone that failed to buy Japara after extensive negotiations 18 months ago for a rumoured $400 million. The attraction is that less than 50% of the annual increase in aged care beds required are actually being built, making the purchase of existing, modern and compliant facilities attractive given future demand.