Many Aged Care operators with older stock are considering redeveloping their facilities in order to position their services for today and into the future. At the same time, the industry is going through unprecedented change and many operators are asking what exactly should I build?

Meanwhile, residents continue to enter Aged Care later and with higher care needs, often resulting in shorter tenures, which can place additional pressure on maintaining occupancy, particularly those Operators with higher bed numbers. On top of all of these factors, the Baby Boomer generation are on approach, demanding greater levels of service and more attractive alternatives for their ageing experience, particularly with regards to accommodation and services.

Drawing from our experience in developing, selling and operating both Aged Care Facilities and Retirement Villages, we will explore the key financial considerations to factor into this decision-making process.

As part of this presentation we will discuss a case study of a relevant project and work through some numbers including:
• How many Aged Care rooms v’s Retirement apartments can I build on the site?
• How do my Aged Care room numbers compare to Retirement Village Apartment numbers?
• What will that mean for my total RAD receipts compared to Retirement Village sales proceeds?
• How does my Aged Care Core Value compare to my Retirement Village DMF/Capital Gain value?
• What are the lending requirements for each project type?
• What are the considerations during trade-up for each model?
• What will be my sustainable ongoing EBITDA for each model?

As part of our presentation, we will also discuss other important factors including:
• How should current tenure and occupancy trends affect our decision?
• What is the market looking for now and how can we “future-proof” our project?
• What are some of the advantages and disadvantages of each model
• What if I’m an experienced Aged Care operator, but I’ve never operated Retirement Village before?