SPECIAL REPORT: WA is continuing to boast a strong aged care development pipeline, and the completion of multiple major developments has meant an increase in bed numbers for some providers.
WA is continuing to boast a strong aged care development pipeline, and the completion of multiple major developments has meant an increase in bed numbers for some providers.
Aged care providers have been investing heavily in property developments in recent years, as an increasingly frail older population places significant demands on existing facilities.
The growth in this sector, which caters for residents requiring a high level of daily care, stands in marked contrast to that for retirement facilities, which are largely for independent living.
In late 2017, Business News reported more than a dozen planned aged-care facility upgrades and developments in Western Australia, with many of these centres and villages having opened across the state.
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These million dollar projects have resulted in some substantial shifts in the ranking of aged care providers on the BNiQ database.
The biggest leap came from Regis Aged Care, as the completion of its Nedlands, Woodlands, and Port Coogee developments resulted in a ranking jump from number eight in 2017, to number three in 2018 by number of beds.
Regis now provides 989 beds in the state.
However, without any confirmed projects on the horizon, Regis is unlikely to climb the ranking further in the near future.
In contrast, Aegis Aged Care Group is likely to maintain its top BNiQ ranking, with a substantial pipeline of developments in progress.
The current 2,700 beds will soon be added to as facilities at Canning Vale, Alkimos, and Murdoch near completion.
Juniper has similarly maintained its second place standing, helped by three completed developments.
These are Juniper Orana, part of the Elimatta residential care and retirement living site in Menora, Gerdewoonem residential care in Kununurra, and the Hayloft nursing home in Martin.
Juniper had revenue of $134 million in the past financial year and now provides 1,226 beds across the state – a number set to grow with facilities planned for completion this year in Albany and Karrinyup.
Major aged care developments are continuing to spring up across WA, representing more than $400 million in investment (see table).
Hall & Prior, which operates services in both WA and NSW, is at the top end of these projects, with $150 million being invested into two aged care precincts in High Wycombe and East Fremantle.
Chief executive Graeme Prior said the private company was investing a similar amount in NSW health and aged care infrastructure development during the next four years.
“Our investment will deliver an additional 650 beds and 600 virtual beds (in-home care) out in the community across WA and NSW, plus a further investment of $50 million into currently existing stock,” Mr Prior told Business News.
“Our new precincts offer therapeutic wellness centres and are also a place for education – veritable universities for aged care, often with dedicated research, training, and education centres.
“Comprehensive research programs are based in the precinct with our research partners and facilities catering to training and educational events.
“Hall & Prior has invested $5 million into applied research in the last 10 years with credible Australian universities and the Commonwealth Department of Health, with plans to double that investment over the next 10 years."
SwanCare is another organisation funnelling millions into its aged care business, investing $55 million in a dementia-specific aged care facility and leisure precinct on its Bentley Park site, to be built by Adco Constructions.
SwanCare chief executive Graham Francis told Business News last year that the development was a significant one for the not-for-profit organisation, which had revenue of $33 million in the past financial year.
“The scope of this project is significant, with considerable flow-on effects throughout the community,” Mr Francis said.
“At peak, the construction project will create 250 jobs and a further 80 direct jobs upon completion.
“That SwanCare is in a position to undertake this scale of development and invest in the future of the retirement and aged care sector speaks volumes for the five decades of experience and dedication that SwanCare has invested in our residents.
“We are very excited about the prospect of working with Adco as we deliver two massive projects that will change the landscape of the SwanCare Bentley Park site.”
Southern Cross Care WA and Masonic Care WA are also on a path to expand their footprint in the aged care sector.
With a current 436 and 246 beds respectively, the organisations have a total of three facilities in the pipeline.
Last year, Southern Cross Care announced the development of an aged care community in Ballajura, with a proposed 245 beds on the 4.4-hectare Paradise Quays site.
Work is expected to begin mid this year.
The organisation has also applied for a $30 million multi-storey aged care facility in the Hilton area.
Meanwhile, Masonic Care has submitted an application for a three-story aged care facility in Middle Swan, costing $27 million.
