AMP Capital today announced Singapore-based G. K. Goh Holdings Limited (GK Goh) will acquire a 47.62 per cent stake in the AMP Capital managed residential aged care provider Domain Principal Group (DPG), for A$136.7 million.
In addition, AMP Life will increase its ownership from 42.5 per cent to 47.62 per cent. This means that GK Goh and AMP Life will both hold equal 47.62 per cent interests in DPG as other clients re-weight their portfolios and exit the investment. The remaining stake in the company is held by DPG management.
AMP Capital will continue to manage the investment on behalf of all shareholders.
As part of the transaction, AMP Life and GK Goh plan to invest an additional A$50 million to finance further investment in Australia’s aged care sector.
AMP Life has invested in the aged care sector in Australia since 1999. GK Goh, through a fund it has a significant stake in, is also a part owner of retirement villages in Western Australia.
AMP Capital Head of Aged Care Sally Evans said: “We’re really pleased that AMP Life and GK Goh will be partners in the continued growth of DPG.
“The transaction gives DPG the opportunity to grow through investment in the existing 55 facilities, as well as building new state-of-the-art homes and potential acquisitions.
“Since AMP Capital acquired its initial aged care investment asset on behalf of clients in 2005, we’ve managed the acquisition of Domain Aged Care and significantly invested in the business, including recruiting a professional and dedicated management team, putting in place new systems, training and stronger governance to ensure that DPG’s residents are receiving quality care.
“The DPG business is performing strongly with increased occupancy and a recent allocation from the Federal Government for another 385 new beds at DPG facilities.
“With the residential aged care sector expected to grow by 40 per cent in the next 10 years, as the population ages, an estimated A$25 billion of capital will be needed to fund new places and rebuild existing homes,” Ms Evans said.
Pat Grier will continue as DPG Chairman and GK Goh will nominate one director for appointment to the DPG Board. Gary Barnier continues in his role as DPG Managing Director.
The transaction is subject to various approvals including GK Goh shareholders and the Foreign Investment Review Board in Australia.
With 55 aged care facilities nationwide Domain Principal Group is one of Australia’s largest privately owned aged care providers and is committed to providing superior levels of residential aged care services to all residents.
Domain Principal Group offers all levels of aged care including, low, high and dementia care as well as respite services.
DPG employs more than 5,000 employees who provide aged care services to more than 4,300 elderly Australians at aged care facilities in New South Wales, Victoria, Queensland and Western Australia.
About GK Goh
GK Goh is an investment holding company listed in Singapore with net assets of approximately S$370 million. From its roots in the securities business, GK Goh now invests its shareholders funds into a range of long-term and liquid investments. Among its major investee companies are the Malaysian property development and hospitality group Eastern & Oriental Berhad; corporate services provide Boardroom Ltd, which operates in Asia and Australia; and euNetworks, which owns extensive assets in optic fibre networks in Europe. Through a fund in which it has a significant stake, GK Goh is also a part owner of retirement villages based in Perth, Western Australia.
About AMP Capital
AMP Capital is a leading investment house managing over A$131 billion (as at 30 June 2013) on behalf of clients through a global network of offices in developed and emerging markets.
AMP Capital is one of the most experienced global infrastructure managers with more than 20 years’ experience and over 100 infrastructure (equity and debt) investments globally since 1988. AMP Capital was one of the first to invest in infrastructure when it participated in the financing of the Sydney Harbour Tunnel in Australia in 1988.
AMP Capital today manages unlisted and listed infrastructure investments in Asia, Europe, North America, Australia and New Zealand.