Council offloads problematic aged care complex
The Kiama Municipal Council is a step closer to selling the problematic Blue Haven Bonaira aged care home and independent living complex.
Local family-owned operator, Hall & Prior Aged Care, is the buyer – outlaying $95 million.
The result would be higher were it not for building defects in bathrooms and with drainage and cladding.
As well, the five year venue is not proving profitable.
“These are not new concerns…Kiama Council has been upfront about these matters and the history of the myriad of issues associated with the Blue Haven Bonaira build and the ongoing operational losses for three years,” council chief executive officer Jane Stroud said.
Bottom line eroded
On 3.1 hectares at 14A Bonaira Street, Kiama, the new H&P asset contains a 124 bed aged care facility across eight houses, including two dedicated dementia homes, and 59 independent living units.
The price will change given liabilities the buyer will take on – employee entitlements, refundable accommodation deposits and ILU entry contributions amongst them (story continues below).
As part of the agreement, staff will stay on.
Contracts were executed last week.
Following settlement on November 1, council is expected to bank $26m.
“This sale is a positive outcome for our community and our council,” mayor Neil Reilly said.
“It ensures that Blue Haven Bonaira continues to provide excellent care under the management of Hall & Prior Aged Care, while also allowing us to focus on our financial sustainability and service delivery,” he added.
Kiama is about 40 kilometres south of Wollongong.
Subscribe to our newsletter at the bottom of this page.
