Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Regis to acquire four premium aged care homes in South-East Queensland for approx. AUD 135 million.

  • Transaction to increase Regis’ national portfolio to 72 homes with around 8,200 beds.

  • Deal expected to be EPS accretive from FY26, with projected annual EBITDA of AUD 13–14 million post-ramp-up.

Regis Healthcare Limited (ASX:REG) has announced a binding agreement to acquire Rockpool RAC Holdings Pty Ltd, a Queensland-based aged care provider, in a transaction that will expand Regis’ presence in the premium aged care sector. The acquisition includes four recently developed residential aged care homes across South-East Queensland, totalling 600 operational beds.

The acquisition is in line with Regis’ strategy to grow its residential aged care footprint through the acquisition of high-quality, modern facilities. The four Rockpool homes are located in Morayfield, Carseldine, Pelican Waters, and Oxley—with three in Brisbane and one on the Sunshine Coast. Each facility features single rooms with private ensuites and has commenced operations within the past six years. The most recent, Oxley, opened in March 2025 and is currently undergoing occupancy ramp-up.

Occupancy rates at the other three homes are high, with Pelican Waters reporting full occupancy at 100%, Carseldine at 99%, and Morayfield at 97% as of 30 June 2025. The Oxley site, still in its early stages of operation, had a spot occupancy of 53% at the same date. In addition to the operational facilities, the Morayfield site includes an adjoining 4,000 square metre vacant block of land.

The final net cash outlay for the acquisition is expected to be approximately AUD 135 million, excluding transaction costs and landholder duties. Regis will also assume Refundable Accommodation Deposit (RAD) liabilities of around AUD 204 million. Future RAD cash inflows from the ramp-up of the Oxley home are estimated at approximately AUD 40 million.

The transaction will be funded entirely from Regis’ existing net cash. As of 30 June 2025, the company reported a net cash balance of AUD 192 million and expects to maintain a net cash position following completion, which is anticipated by 1 September 2025, subject to customary conditions.

Regis Managing Director and CEO Dr Linda Mellors described the acquisition as consistent with the company’s strategy to expand its portfolio through high-quality additions. She noted that Rockpool has a significant track record of care, with an excellent accreditation record across its homes.

Rockpool CEO Melissa Argent acknowledged the alignment in values between the two organisations and expressed confidence that Regis would continue delivering high levels of care and support to staff and residents.

Following the acquisition, Regis will operate 72 homes (all 100% freehold), with approximately 8,200 beds. The company anticipates a pro-forma annualised EBITDA of AUD 13–14 million once the Oxley home is fully ramped up. For FY26, Regis expects an EBITDA contribution of AUD 7–8 million from the acquired portfolio.

Cost synergies are expected across procurement and corporate functions, and the acquisition is projected to be EPS accretive in FY26, with further financial benefits expected in subsequent years.

REG shares jumped 2.33% to AUD 7.68 per share at the time of writing on 24 July 2025.