Regis steps up its aged care growth plan

Regis has finalised the acquisition of two aged care homes in regional Victoria, continuing its expansion along the Geelong growth corridor.

The ASX-listed provider has acquired homes in Torquay, 22km south of Geelong, and Drysdale, 16km east of Geelong, from family-owned operator OC Health. The sale was first announced in October.

With 230 beds across the two homes, the $45 million purchase price plus a $36 million liability for RADs puts the deal at just over $350,000 per bed – well below the current build cost of more than $500,000 per bed. 

“I’m delighted to welcome these two homes and communities to Regis Aged Care,” said Regis Managing Director and CEO Dr Linda Mellors.

The acquisition brings across around 190 residents and 270 staff.

Growth through acquisition

Regis has been pursuing an ambitious growth strategy and now operates 74 aged care homes with 8,400 beds nationally. It has added 13 homes and more than 1,700 beds through acquisition in just over two years.

In July, the provider acquired four aged care homes from Rockpool.

However, the recent AN-ACC reweighting has prompted Regis to reassess plans to open two to three new greenfield developments a year.