Plans big aged-care growth after exiting Delfin
DCA Group Ltd, of Sydney, is buying two aged-healthcare centres at Greenacre and Ashfield in Sydney for $A11.6 million and aims to double that part of its business in the next year because of the growth potential.
These additions will give it total assets of $A55 million, including 11 aged-healthcare centres and 847 bed licences.
“The outlook for the aged-care sector is highly favourable. The number of people requiring care will increase by more than 50% over the next 10 years,” managing director David Vaux said.
“Over the past six years, residential aged-care funding paid by the Commonwealth [Australian federal government] has increased from $A2.5 billion to $A3.8 billion and the Treasurer announced in the budget that it will rise a further $A336 million over the next financial year to $A4.2 billion. This represents an increase in funding of 68% since 1995-96.”
DCA is in the process of selling its stake in residential developer Delfin to Lend Lease Corp so it can concentrate on diagnostic imaging, aged healthcare and eldercare.