Aged care service provider Respect continues expansion with acquisition of coastal NSW aged care and retirement portfolio

National aged care provider Respect has furthered its regional expansion with the acquisition of six coastal NSW assets from non-profit organisation NVC Group.

CBRE’s Australian Healthcare & Social Infrastructure team of Marcello Caspani-Muto, Jimmy Tat and Sandro Peluso handled the confidential off-market expressions of interest process on behalf of NVC Group following the decision to divest its coastal NSW aged care and retirement portfolio.

Mr Caspani-Muto noted the transaction of the six assets - three aged care and three retirement facilities located in Nambucca Heads, Macksville and Kempsy - is one of the largest portfolio deals for the sector this year.

“It’s no secret merger and acquisition activity is continuing to pick up across the aged care and retirement sectors and this transaction is testament to that trend,” Mr Caspani-Muto said.

“We continue to see new mandates for growth across portfolio acquisitions in aged care and retirement markets. Prospective purchasers are often notable household names in the sector but there is increasing interest from international buyers and new entrants wanting scale in the sector with immediate management and operational capabilities.

“There were three competitive positions tabled and well-regarded provider Respect was selected to continue the business following NVC’s consideration of the best operational fit for its residents in the long-term,” Mr Caspani-Muto added.

Mr Tat noted, “There are many buyer profiles untapped across the country for this sector with our business strongly believing there has been a lack of true competitive sales campaigns and canvassing initiatives across the seniors living market. We are looking to change that and feel operators will be surprised at the numbers achievable in today's market. This will result in an increased level of Merger and acquisition activity over the next five years.”

The NSW portfolio

Nambucca heads:

• Riverside Gardens, a 97-bed residential aged care home and 55-unit retirement village

Macksville:

• Autumn Lodge, a 95-bed residential aged care home
• Fairway Gardens, a 38-unit retirement village
• Lakeside Gardens a 32-unit retirement village

Kempsy:

• Cedar Place, a 66-bed residential aged care home