Mercy Health have successfully divested a former seniors living and community hostel once labelled “Maryville Hostel” and operated by Good Shepard Aged Care Services.

The property was transacted by CBRE’s Australian Healthcare and Social Infrastructure team in a continued run of dominance across the national Seniors living market. With close to an 85% market share in the sale of vacant seniors living assets nationally since 2022 the transaction follows the teams previous transaction of a former Bupa Aged Care home in Donvale (VIC). Read more here: 

The property located a 7-9 Maryville Way, Boronia featured a combined 11 buildings across over 10,000sqm* of land area with the most recent being an early 2000’s built Aged Care home. The building featured 40 single rooms, all of which were en-suited.

Marcello Caspani-Muto said “The growth in demand for aged care beds is undeniable. Between funding challenges and the criticism the sector received through the countries media and Royal Commission between 2020 and 2021, coupled with construction cost challenges, these have all slowed development of new homes within the sector. Forget about occupancy concerns, we are set for a substantial shortfall of beds for the countries ageing population in a very short period of time. Almost all providers our team speak with are operating at occupancy level close to or exceeding 92-95%. In aged care this is as good as 100%.

There are still only a small selection of operators who continue to develop or refurbish and expand aged care homes and we expect this number to begin to increase again. We need many more providers to do the same and in quick order or many people reading this story will have nowhere for their loved ones if the time comes this is required. Many of our teams sales of comparable assets have actually been to hospital or NDIS related users, with aged care providers in the minority of buyer profiles.”

Jimmy Tat said “We have seen average EBITDA per bed for Aged Care providers jump from below $10,000 per bed in Q2 of 2022 to over $12,000 per bed as of today and many are well beyond this. It’s clear financial performance in the space is once again on the rise and we expect a notable volume of increased activity to occur this year as a result.

Setting aged care users aside, the subject property was expected to be well received by various other users across Aged Care, traditional accommodation, NDIS and more.  There is notable value add potential for the asset given it’s existing improvements and underlying land area of over 10,000sqm*. This would have allowed a repositioning and expansions offering of scale or multi-use outcome.”

The subject property sold unconditionally on a short-term settlement exceeding both Mercy Health and CBRE’s expectations.

Related Reading:

Vacant aged home care facility sold to offshore investor - CBRE | Commo.

CBRE Lead the way at the 2024 Healthcare Real Estate Summit  | Commo.

Brighton Childcare Centre sold by CBRE for $17.5m adds to Australia’s list of largest ever childcare transactions | Commo.

Vacant Seniors Living Community sold by CBRE