Investment bank Moelis Australia has acquired a 10% stake in care operator Japara Healthcare for A$67.9 million (US$53.1 million).
Investment funds managed by Moelis Australia Asset Management have acquired a $50.4 million strategic interest in Japara inclusive of a $17.5 million investment by Moelis Australia.
“Moelis Australia believes that aged care is an attractive sector in which to invest and that Japara has quality assets combined with an outstanding record of management, governance and provision of resident care,” it said.
The move follows Moelis’ acquisition of a 70% controlling stake in care operator Infinite Care from Next Capital for A$45.4 million at the end of September.
Infinite Care has five aged home care facilities in operation in Adelaide as well as two new greenfield sites under development in Toowoomba and Cornubia in South East Queensland which are due for completion in 2018. It has a development pipeline of 1,500 bed licenses across 13 to be developed facilities in areas of aged care undersupply. Founders and joint managing directors of Infinite Care, Chris Stride and Tony Partridge will continue to run the business.
When the acquisition completes at the end of the month, Moelis Australia will hold its interest in Infinite Care via a newly established managed fund, the Moelis Australia Aged Care Fund. Moelis Australia will offer third party investors the opportunity to co-invest in the Fund with Moelis Australia retaining a co-investment stake of 10%.
The fund, which has now been upsized to A$70 million, is targeting a total return of more than 20% a year over a four year term.
Shares in Japara yesterday jumped 7.5% to A$2.00.
