Bupa Asia Pacific has appointed Morgan Stanley to explore a sale of its Australian residential aged care operations, while Jarden has reportedly been engaged to handle its New Zealand business.
Industry sources cited by The Australian newspaper estimate the combined portfolio could fetch more than $2 billion.
The reported move would put one of Australia’s largest residential aged care operators in play at a time when investor appetite for established portfolios has returned.
Bupa operates 57 residential aged care homes in Australia, including 24 in NSW and 21 in Victoria, as well as about 40 homes in New Zealand.
Bupa APAC reported 6% revenue growth to $12.9 billion in 2025, while occupancy across its aged care homes rose to 95% and underlying profit climbed 10% to $947 million.
New leadership, major investment
The potential sale comes as Bupa undertakes a significant overhaul of its Australian aged care portfolio.
Last month, Bupa appointed Jayant Krishnan as Managing Director of Bupa Villages and Aged Care Australia, adding a new leadership dimension to the business as it enters a potentially transformative period.
Bupa has also committed $500 million to refurbishing and upgrading older Australian care homes.
One of the biggest projects is at Morphettville in South Australia, where Bupa has lodged plans for a $167 million redevelopment.
The investment raises an obvious question for potential buyers: whether Bupa is preparing its portfolio for long-term growth or improving the quality and value of its assets ahead of a transaction.
Second attempt at a sale
It is not the first time Bupa has looked to exit or reshape parts of its aged care portfolio.
In 2022, Bupa appointed Macquarie Capital to explore a potential sale of its New Zealand aged care and retirement living operations, with speculation also surrounding its Australian business.
The process was ultimately abandoned amid difficult market conditions.
Four years later, the market has changed considerably.
Bain Capital’s reported $2.5 billion sale of Estia Health to infrastructure investor Stonepeak and Abu Dhabi-based Axight has demonstrated the valuations investors are prepared to place on established aged care platforms.
Bain had acquired Estia for $838 million in December 2023 and subsequently expanded the business from 73 homes to more than 90.
The Bupa portfolio would be significantly larger than many recent transactions, potentially making it one of the sector’s biggest deals.
Existing assets attract buyers – new beds don’t
The potential Bupa sale highlights a striking feature of Australia’s current aged care market.
Investors appear increasingly prepared to pay substantial sums for established operators with existing residents, facilities, cash flow and development opportunities.
Yet investment in new residential aged care capacity remains weak.
The Federal Government estimates Australia needs around 10,600 new beds each year for the next 20 years.
Only 802 new beds were completed in 2025-26.
The contrast suggests that while capital is returning to established aged care assets, the economics of building entirely new facilities remain challenging.
For Bupa, the reported sale process will test just how much investors are now prepared to pay for a large, established portfolio, and whether the combination of high occupancy, significant refurbishment investment and an improving aged care funding environment can overcome the risks associated with the sector’s increasingly demanding regulatory and operating environment.
