Australia's Japara Healthcare Ltd. is acquiring Riviera Health's residential aged care portfolio.
The deal includes four aged care facilities in Australia, as well as a closed aged care facility, 4.3 hectares of development land and 507 bed licenses.
The net purchase price for the deal is about A$39 million, but the price tag will be reduced to A$16 million with Japara expecting to earn over A$23 million from Refundable Accommodation Deposit earnings from Riviera's nearly completed care facility in Brighton-Le-Sands, Australia.
The acquisition is part of Japara's strategy to expand in New South Wales, Australia where the company currently operates a 110-bed greenfield development. Japara will finance the deal with debt and cash reserves.
The acquisition, which is expected to be completed April 1, is subject to certain conditions, including government approval for the transfer of bed licenses.