Regis Healthcare Limited (ASX: REG), one of the largest aged care operators in Australia, announced today it has entered into binding agreements to acquire two high-quality residential aged care homes: Ocean Mist Aged Care and Drysdale Grove Aged Care. Founded over 30 years ago, Regis currently provides services to more than 10,000 older Australians through residential aged care homes, home care service hubs, day therapy and respite centres, and retirement villages. The acquisition includes Ocean Mist in Torquay with 120 beds and Drysdale Grove in Drysdale with 110 beds, for a net consideration of approximately $45 million.
The purchase aligns with Regis’ strategy to broaden its residential aged care footprint and will be funded from existing net cash. Both homes have been either built or extensively refurbished within the last eight years and feature 100% single ensuite rooms. Regis expects to assume a Refundable Accommodation Deposit (RAD) liability of approximately $36 million as part of the transaction, with potential for further RAD upside through increased occupancy and room pricing.
According to Regis’ Managing Director and CEO Dr Linda Mellors, the acquisition strengthens the company’s presence in Victoria, extending its reach west of Melbourne into a rapidly growing regional area with increasing demand for aged care services. Dr Mellors also noted that upon completion, Regis will have added 13 homes and more than 1,700 beds through acquisition over the past two years, with the company continuing to pursue strategic acquisitions. The transaction is anticipated to be EPS accretive in FY26.
The transaction, subject to customary conditions, is expected to be completed by 1 December 2025. Regis reported a net cash balance of $99 million on 30 September 2025, with net RAD cash inflows of $90 million in Q1 FY26, supporting continued investment in the Company’s growth initiatives.