Regis Healthcare (ASX: REG) has entered into binding agreements to acquire two residential aged care homes from Ti Tree Operations Pty Ltd (Ti Tree), a privately-owned residential aged care provider, for a net consideration of $35.5 million.
Ti Tree operates two Melbourne-based premium residential aged care homes in Capel Sound and Mornington with a combined 262 beds under the Village Glen trading name.
Village Glen Mornington was opened in 2018, while Village Glen Capel Sound was opened in 2014, and is located next door to the largest retirement village in Victoria with over 600 villas and apartments. Both homes are fully accredited and have a strong reputation in the market with average occupancy of 96% in Q4 FY24.
“We are excited to add these quality homes to our portfolio and broaden our footprint in Melbourne. We look forward to welcoming the residents, families, employees and communities to Regis and ensuring a seamless transition of services,” Regis’ CEO, Dr Linda Mellors, said.
Key benefits of the acquisition include:
As part of the transaction, the RAD liability assumed at settlement is expected to be approximately $68 million. The net consideration represents a high single digit multiple of pro-forma annualised EBITDA or approximately $135,000 per bed.
Regis’ aged care portfolio will increase to 68 homes with approximately 7,660 beds following completion of this acquisition and the September closure of the Weston home in Western Australia. In addition, the new 112-bed greenfield residential aged care home in Camberwell, Victoria will open to new residents by late 2024.