Six ex-Heritage Care homes sold with leasebacks
EXCLUSIVE
A 570-bed aged-care portfolio, including the former Epping Gardens complex, where 38 residents died during a COVID-19 outbreak in 2020, has sold for $95.285 million.
The six properties were offered for sale by Peter Arvanitis, his wife Areti and Tony Antonopoulos, who were behind the Heritage Care business now known as Aeralife.
The buyer is LSC Funds Management, controlled by Melbourne Securities Corporation Limited, also known as MSC Group.
The complexes seeded the Healthcare Investment Fund, which was subscribed after calling for wholesale backers mid-year.
Centres sold with leasebacks
HCIF is advised by a board including former EY and Deloitte Private partner Bruce Dungey, with Peter Rubinstein, John Rutledge and John Blight.
Prior to settling on the portfolio, they secured Aeralife to 20-year leases with two 10-year options (it was being marketed with a 15-year leaseback).
In Melbourne’s north, the deal includes the former Epping Gardens (pictured, top), with 148 beds across 8700 square metres at 25 Willandra Drive.
Now known as Aeralife Northpoint, it cost $26.311m.
In the east, the complex now known as Aeralife Bayswater, at 325-329 Canterbury Road, Bayswater North, traded for $21.271m.
On 1.25ha, it contains 121 beds (continues below).
NSW centres
Aeralife banked a total of $47.703m for the four NSW properties:
- Aeralife Botany at 31-37 Edgehill Avenue, Botany;
- Aeralife Kingswood at 29-33 George Street, Kingswood;
- Aeralife Pennant Hills at 2A The Crescent, Pennant Hills; and
- Aeralife Queanbeyan at 7 Campbell Street, Queanbeyan.
HCIF said it independently valued the portfolio upon settlement in late May at $97.45m.
Extended leaseback, value boost
Mr Arvanitis was the founder and former chief executive of Estia Health before becoming a major figure in Heritage Care
The Epping Gardens outbreak was one of the most serious episodes of Australia’s COVID-19 aged-care crisis.
Heritage Care was later prosecuted by WorkSafe Victoria over alleged failures relating to staff training and infection control.
It was found not guilty by a County Court jury in September 2025.
A separate class action arising from the Epping Gardens outbreak remains before the Supreme Court of Victoria.
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