The freehold land and business of Warrina Aged Care, in New Gisborne, 57km northwest of Melbourne’s CBD, has been sold as an ongoing concern to a new player in the sector, Maiestas Care, for $24 million.
CBRE Healthcare and Social Infrastructure’s Marcello Caspani-Muto, who sold the 79 single rooms with ensuites home on 7,000sqm of land, explained the deal.
“Construction costs for aged care are now between $300,000 and $450,000 per bed, which makes the property alone worth about $21 million. That’s why we have been seeing vacant facilities selling and being renovated and refurbished,” he said.
Warrina Aged Care, was originally built as a Supported Residential Service facility in 2005 with 46 suites, forming part of a retirement village. An extension three years ago added 33 rooms, a common area and a reception, and it was registered as a residential aged care facility. A 10-unit retirement village that adjoins the site will be extended.
Marcello Caspani-Muto, CBRE
“Despite ongoing commentary surrounding the profitability of the industry as a whole, this deal has set a positive tone for transactional activity,” said Marcello.
“Contrary to many beliefs, purchases will not be limited to large scale institutional and Not for Profit providers. We are having constant discussions with new entrants and boutique providers who are committed to the sector and are wanting to focus on building scale for the future.”
The directors of Maiestas Care, which registered for an ABN in 2015 and is an approved residential aged care provider, have, according to CBRE, a “lengthy and successful track record” in the sector.
