RSL Care + RDNS are understood to be in discussions with Sentinel Property Group to take over operations at Estia Health.

Sentinel, which now owns just under five per cent of Estia, issued an update to its investors last week saying it intends to buy Estia’s 68 sites, then sell operations at 60 of the sites to a leading aged care facility operator.

The operator has since been identified as RSL Care + RDNS.

Sentinel said the deal would involve entering into a formal agreement with RSL Care + RDNS to buy the operations for $300 million and the assumption of specific liabilities.

It is understood a different buyer has been identified for the operations and property at the remaining eight sites, at an estimated valued at $60 million.

Sentinel said that completion of the Proposed Transaction along the terms outlined above and subject to satisfaction of certain conditions would result in Estia selling its aged care operations and maintaining its real property holdings on a lease back arrangement to the Operator in respect to the prescribed sites.

It has not disclosed which sites would be managed by RSL Care + RDNS.

Sentinel said the commencing rent for all 68 sites is expected to be approximately $40 million per annum.

Meanwhile, Estia has denied any knowledge of Sentinel’s plans prior to receiving the update sent to Sentinel’s investors.

“Estia reiterates that there has been no other contact with Sentinel or any of the other parties mentioned in the investor update,” Estia told its shareholders on Friday.

“No proposal, formal or informal, and no communications have been received from any of these parties concerning the proposed transaction mentioned in the Sentinel Investor update.”

“The board of Estia advises shareholders to take no action as a result of this information at this time.”