High demand for residential aged care centres

There has been a strong interest in residential aged care facilities due to a lack of national stock, according to Colliers.

The organisation has recently negotiated two deals for operators in NSW, including Highfields Manor Aged Care in Port Macquarie and the Palms Nursing Home in Kirrawee. The total value of these two transactions was over $59 million.

Colliers Healthcare and Retirement Living National Director Chris O’Driscoll said there was huge interest in aged care facilities due to the lack of stock nationally.

“With a critical housing supply shortage, against a backdrop of significant immigration and population growth and low residential vacancy rates, aged care should be part of the housing solution, but the cost of construction has limited the amount of new stock coming to market,” he said.

“However, over the past 12 months we have seen the market gaining momentum, with growth in the number of facilities exchanging.”

Highfields Manor Aged Care is a 107-bed aged care facility over three levels with basement car parking, which commenced operation in July 2022.

The Palms Nursing Home has two central courtyards, garden landscaping as well as basement car parking and is situated in one of Sydney’s most popular lifestyle destinations in the Sutherland Shire.

While the Colliers team have secured deals for two assets, they have the opportunity to present to the market a new operating facility situated in Lake Cathie, operating as Lake Cathie Manor Aged Care.

Lake Cathie Manor Aged Care is an 18,200 m² property in the Port Macquarie region of NSW offering 129 single beds with ensuites across a single level that spans six wards.

Colliers Healthcare and Retirement Living Head of Transaction Services for Asia Pacific Ian Sanders said from a low base in the lead-up to the Royal Commission into Aged Care, the industry has significantly improved.

“These improvements have led to the transaction side gaining significant momentum, which has been witnessed in the exchange of two facilities in a short period of time, followed by another asset listed for sale, the Lake Cathie Manor Aged Care,” he said.

“This new listing offers a great opportunity for investors in a tightly held residential aged care market.”

Image caption: Lake Cathie Manor Aged Care facility.