Estia Health Ltd (ASX: EHE), the aged care operator which experienced a horror share market debut on Friday, has informed investors it will buy another facility to expand its portfolio for a sum of $13.5 million.
The facility contains 80 single rooms while it has a brownfield opportunity for a further 28 single rooms which are subject to planning approval. Notably, each of the 80 rooms are single rooms, which is significant as they are usually the most sought after given their higher level of privacy. This adds to Estia's already attractive industry position, whereby it boasts roughly 92% single room configuration.
As reported by Estia: "The facility meets the company's acquisition criteria of being located in high growth metropolitan areas, adding to the concentration of existing sites." The acquisition should be completed in the first quarter of FY15.
In addition to the planned acquisition, Estia also said that it had settled three acquisitions that had been flagged in the prospectus. In total, Estia will boast an overall portfolio of 45 homes with a total of 3,693 places across Australia. As the company continues to expand, Estia Health could be a great way for investors to capitalise on Australia's ageing population.
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