“Aged care is very tough at the moment. I’ve been working in aged care for 15 years directly, and this is the hardest I’ve found it,” says Tony Dunn, CEO of regional Victorian Not For Profit Westmont Aged Care Services.
Despite widespread recognition that demand for dementia care is set to soar, it took Westmont more than 3.5 years to secure bank funding for the expansion of its dementia facility in Barnaduda, 10km southeast of Wodonga in northern Victoria.
The provider tried twice to access funds through the Australian Government’s grants program without success.
“It’s just too hard,” Tony said.
Ultimately, Westmont convinced lenders to back the project, which will add another 30 dementia care beds to the existing 32 at Westmont Cottages. The $12 million expansion equates to $400,000 per bed – well below the $550,000 often quoted for regional builds.
Proving viability
With annual turnover of around $30 million, Westmont had to demonstrate to banks it could meet a strict set of KPIs over 12 months before funding was approved.
“I think it’s fair to say the banks are cautious about lending to aged care,” Tony said.
Even so, he stressed the importance of backing viable operators.
“The good providers are still doing good things. There’s a few bad ones, but the majority that I come across are all trying to do the right thing. There’s a big shortage [of aged care beds] and we need to look after all the good providers, make sure they stay.”
Keeping building costs low
To keep costs down, Westmont worked with experienced aged care specialists JWP Architects and Premier Building & Construction, who also delivered Stage 1. Both Tony and his facilities manager have previously overseen aged care projects, and some of the underground land preparation was completed in Stage 1.
On top of the 30 new dementia care beds, Stage 2 will deliver an activity centre and centralised supports, including a kitchen and laundry, to the 15ha site. The precinct already includes independent living villas, 40 assisted living apartments, a 102-bed residential aged care home (Westmont Homestead) and the existing 32-bed Memory Support Unit (Westmont Cottages).
Looking ahead
The expansion is due for completion in May 2026, after which Westmont will progressively open the new beds.
In 2023-24, Westmont reported EBITDA of $2.68 million, a sharp turnaround from a $1.07 million deficit in 2022–23. The Not For Profit also sold its Seniors Lifestyle Village in September 2023, recording a $2.1 million profit on the sale.
