Japara to sell two elderly care facilities as it considers takeover bid on Calvary
ASX-listed elderly care operator Japara Healthcare, which operates 51 facilities in Australia, continues to sell properties.
He has entered into an agreement to sell and lease the Japara Capel Sands retirement home in Capel Sound (formerly Rosebud West), 79 km from Melbourne’s CBD.
“The sale proceeds are approximately $ 8 million net of costs and reflects a 6.4% return. The initial lease term is six years and the lease includes three four-year extension options ”, Japara said in a statement to ASX.
Settlement of the leaseback is scheduled for late June or early July.
Japara, whose CEO and Managing Director is Chris Price (pictured above), has also agreed to sell a vacant site at 20 Berkeley Road, Glenning Vale, on NSW’s central coast, for around $ 1 million net of costs . Japara also confirmed that it settled the $ 1.6 million sale of its closed senior care center in Wyong, also on the central NSW coast, in April.
Japara said he was still reviewing the $ 278 million “non-binding indicative proposal” of the Catholic Calvary nonprofit (Little Company of Mary Health Care) in April. Calvary has four public hospitals, 11 private hospitals, 14 care facilities for the elderly and 11 retirement villages and 12,000 employees.
The offer would see Calvary acquire 100% of Japara’s shares through a scheme of arrangement.
Japara shares have still not recovered from a high of $ 3.34 in October 2015. The share price was $ 1.11 on Thursday.