Australian banking trio support major aged care acquisition
Published on 8 August 2024
Several months after announcing its acquisition of Signature Care Group, For Purpose Investment Partners has confirmed that three major banks will provide $260 million of joint debt facility to underpin the purchase.
Key points
- For Purpose Investment Partners (FPIP) aged care arm, For Purpose Aged Care Australia (FPACA), acquired Signature Care’s 14 homes in April
- The addition of more than 2,000 beds will see FPACA become a top 15 Australian aged care provider; they previously acquired 305 operational beds via Victorian aged care provider Luson Aged Care
- NAB, Commonwealth Bank (CBA) and Bank Australia have provided the support, following in the footsteps of Qantas Super and Australian Ethical Investment which have already provided $35m of social loan notes
The debt facility is a critical commitment as the relative aged care industry newcomer takes over eight operational homes and the completion of six sites in development. They have a total of 19 homes now, including those through Luson Aged Care.
“We are delighted to partner with NAB, CBA and Bank Australia to support the expansion of our aged care platform,” Michael Traill, Executive Director of For Purpose, said.
“With this debt facility the banks are demonstrating their leadership in financing social impact in Australia while supporting better outcomes for thousands of Australians in aged care.
“The inclusion of $35m in social loan notes is a further endorsement of the strength of the FPACA platform to deliver institutional grade long term financial returns and social impact.”
It was announced in April that Qantas Super committed $75 million to FPACA, the first major institutional commitment to the organisation. While this not only supports the aged care expansion and growth, Qantas Super members also have additional impact investment returns via the environmental, social, and governance (ESG) landscape.
The impact lending of the three banks is also a sign that the banking sector has a strong interest in the aged care sector, with Bank Australia’s Head of Impact Lending, Tim Von Ess, stating that they aim to meet customers’ expectations that their money is used to generate positive social and environmental impact.
General Manager, Major Client Group CBA, Craig McQuillen, added that they are proud to support the ambition to transform the aged care sector and create a positive social impact.
Similarly, John McCarthy, Head of Corporate Health, NAB said, “As a banker to the seniors living sector for over 10 years, I know how important the investment in quality aged care is to communities. NAB is delighted to be partnering with FPACA as they continue to support the aged care sector and bring critical social infrastructure to regional locations.”
With FPIP working through several Specialist Disability Accommodation (SDA) projects as well, there is no slowing down for the impact investment manager.
We have an ambition of transforming the aged care sector to have a broader social impact that starts with person-centred care and a valued workforce,” Toby Hall, FPACA Chair, shared.
“The support of the banks, preceded by that of institutional investment, demonstrates the value of aged care and the role it plays for Australians and their families.”