Australian Unity’s property arm has bought nine South Australian aged care homes from Bolton Clarke in a $220 million deal.

The sites – eight in metropolitan Adelaide, and one in Victor Harbor – are 95% single rooms, and increase Australian Unity Healthcare Property Trust’s (AUHPT) South Australian exposure to 11 sites and its total aged care portfolio to 22 homes; Bolton Clarke will continue to operate the nine homes under a minimum 20-year lease back arrangement.

“In as little as five years, some 60,000-80,000 Australians will turn 80 every year. Given the strong macro-economic drivers, population shifts, and alignment with our existing portfolio, fit-for-purpose aged care properties present important opportunities for investors in AUHPT,” said Chris Smith, General Manager – Healthcare Property, Australian Unity (pictured).

“The quality of the assets and the secure, long-term lease arrangements will provide investors a compelling, long-term income stream through to November 2042.”

Stephen Muggleton, CEO of Bolton Clarke (pictured), says services will not change at all in South Australia for residents or employees as a result of the deal.

“Our long-term focus has been on growing our services to meet the needs of ageing Australians. This is an innovative way we can accelerate this growth.

“It enables us to expand much-needed aged care services into high-demand locations and invest in our capital works development pipeline,” he said.

The homes are all among those Bolton Clarke bought in its acquisition of Allity, which was completed earlier this year.