Hall & Prior has partnered with Vital HealthCare Property Trust to purchase Grafton Aged Care Facility, bringing its total portfolio in New South Wales to 11 properties.
Two adjacent residential properties were also acquired for potential future expansion.
“With a relatively high and growing proportion of elderly in its catchment, both Hall & Prior and Vital envisage future expansion to meet the rising demand for aged care services,” Vital said in a media statement last week.
“This transaction builds on our earlier investment into the residential aged care sector with our highly experienced partner,” Chief Executive of Vital’s Manager, David Carr said.
“We have adopted a conservative and prudent approach to opportunities since our initial acquisition in early 2016. However, our long-term outlook for the sector remains favourable with residential aged care a logical inclusion in our scale and diversification strategy.”
Graeme Prior, CEO of Hall & Prior, said it plans to expand resident amenities and community care services in the area over the next financial year as it commences the 20-year lease term.
“Our NSW portfolio has grown significantly in the past two years, after we acquired four homes last year,” Mr Prior said.
“Grafton will also be our third home in a rural community, which is a testament to our commitment to caring for those in outside of our city centres.”
“The opportunity for growth is one of the fundamental reasons we were attracted to Grafton. There will be a further investment of $2.5 million over the next financial year to increase resident amenity and develop a community care offering.”
The 43-room residential aged care facility is located in South Grafton, NSW, approximately 70km north of Coffs Harbour.
It has a mix of single, double and triple rooms, providing a total of 83 beds including companion rooms, which enable residents to maintain social connections more easily.
The 14-bed West Wing has a dedicated palliative care room. There is also the option for family members to stay overnight if they wish.