Regis Adds 600 Beds in South-East Queensland with $135M Deal

Strategic Expansion in Queensland

Regis Healthcare Limited (ASX – REG) has announced a significant acquisition that will broaden its residential aged care footprint in South-East Queensland. The company has entered into a binding agreement to acquire Rockpool RAC Holdings Pty Ltd, a private operator of four premium aged care homes, collectively offering 600 operational beds. This move aligns closely with Regis’ ongoing strategy to grow through the acquisition of high-quality, well-located facilities.

The four homes are situated in high-demand areas – three in Brisbane and one on the Sunshine Coast. Notably, these facilities are relatively new, having opened within the last six years, with the Oxley home commencing operations as recently as March 2025. Occupancy rates across the portfolio are strong, ranging from 53% at Oxley, which is still ramping up, to full occupancy at the other sites.

Financial Implications and Operational Synergies

The acquisition is expected to require a net cash outlay of approximately $135 million, funded entirely from Regis’ existing cash reserves, which stood at $192 million as of June 30, 2025. Alongside this, Regis will assume Refundable Accommodation Deposit (RAD) liabilities of around $204 million. The Oxley facility’s ramp-up phase is projected to generate future net RAD inflows of about $40 million, adding to the company’s liquidity profile.

From a financial perspective, the deal is forecast to be accretive to earnings per share (EPS) in the 2026 financial year. Pro-forma annualised EBITDA following the Oxley ramp-up is estimated between $13 million and $14 million, with FY26 EBITDA expected in the range of $7 million to $8 million. Additionally, Regis anticipates cost synergies through procurement efficiencies and streamlined corporate infrastructure, further enhancing the acquisition’s value.

Leadership Perspectives and Future Outlook

Regis’ Managing Director and CEO, Dr Linda Mellors, expressed enthusiasm about welcoming Rockpool’s residents, staff, and communities into the Regis family. She highlighted the acquisition as a natural extension of the company’s commitment to premium aged care services. Rockpool’s CEO Melissa Argent echoed this sentiment, emphasizing shared values and confidence in Regis’ ability to maintain high standards of care.

With this acquisition, Regis’ portfolio expands to 72 homes, all 100% freehold, encompassing approximately 8,200 beds nationwide. This scale reinforces Regis’ position as one of Australia’s largest aged care providers, well-placed to navigate the evolving sector landscape.

Completion of the transaction is expected by September 1, 2025, subject to customary conditions. Investors and analysts will be watching closely how the integration unfolds and how occupancy and EBITDA ramp-up at Oxley progress in the coming months.