Family affair: Estia Health founder and son sell Toorak mansions

The Arvanitis family’s dalliance with real estate continues with Stephen Arvanitis, the son of Estia Health founder Peter, selling his Toorak mansion for roughly $30 million just 18 months after buying it.

The sale also follows hot on the heels of Peter Arvanitis and his wife, Areti, listing their Toorak mansion for a whopping $50-55 million last October. 

Who is Peter Arvanitis?

• Peter Arvanitis is an Australian entrepreneur best known for founding Estia Health in 2005
• In 2014, Estia Health was floated on the Australian Securities Exchange (ASX) with the company valued at $725 million
• Mr Arvanitis, who became a director and the largest shareholder, remained involved with Estia Health until 2016 when he resigned as a director
• That year, following a profit downgrade and concerns over debt management after major acquisitions, Estia’s share price collapsed, and his entire stake – approximately 17.7 million shares, or nearly 10% of the company – was sold
• His departure and the share sale netted him around $55 million, marking the end of his direct involvement with Estia Health

Both Peter and Stephen Arvanitis have shown a flair for real estate, although the latest sale arguably netted little return on investment for the younger property mogul.

Peter listed his five bedroom, four bathroom home at 27 St Georges Road, Toorak in February. Aged just 27, he purchased the $30 million property in 2023 from members of the billionaire Smorgan family, Michael and Hayley.

However, industry sources told realestate.com the home sold within its $29m-$31m advertised price range.

Located on 2,100 square metres, it’s one of the largest land holdings on St Georges Road. While it is located in prime position on the north side, the property reportedly has scope to rebuild or renovate, indicating its ageing facade and interior were not up to scratch. 

Regardless, its whitewashed French doors, fireplaces, parquet wooden flooring, and a sweeping curved staircase are still attractive features The kitchen is equipped with a large island bench and a butler’s pantry. The main suite includes a fireplace, walk-in dressing room, and an ensuite with a freestanding stone bathtub. 

Looking past those features, it’s another multi-million dollar sale for the Arvanitis family which built its fortune on aged care. Unfortunately Peter’s time in the sector darkened after a bright start that saw him turn Estia Health into one of the sector’s largest players.

Estia Health’s ‘horror’ share market debut wiped $176 million off the company’s market capitalisation on the first day alone. From there, it struggled to bounce back in the short term as poor financial results, the fear of government funding cutbacks and concerns over debt management lingered. 

He sold his 17.74 million shares at a price of $3.15 in 2016, netting just over $55 million. At the time, it was unclear whether the choice was his or if the bank forced his hand and that Estia stock was collateral for a loan.

While it is no longer a publicly listed company, Bain Capital’s 2023 acquisition of Estia Health for $3.20 per share solidified the organisation’s return to form as one of the sector’s leading providers.

Meanwhile, after leaving Estia, Peter Arvanitis shifted his focus to other ventures, particularly in real estate and hospitality. In 2019, he partnered with Marriott to develop a 180-room Moxy hotel in Melbourne’s South Yarra, signaling a pivot from aged care to property development. 

That same year, he sold an 18-storey tower on Collins Street in Melbourne for $78 million, a property he had purchased four years earlier for $50 million and refurbished to boost its value. He also divested other assets, including the Hillside Thoroughbred horse breeding farm in 2018 for $2.3 million and the Maroondah Village Shopping Centre for $18.8 million.

Controversy continued to follow Peter Arvanitis, though, especially during his two year tenure as a director with Heritage Care, owner of Epping Gardens. Heritage Care was ultimately charged by WorkSafe Victoria in relation to a COVID-19 outbreak in 2020 that resulted in 34 residents dying from COVID-19 related complications. 

Months later in 2020, he and his wife Areti showcased their newly built Toorak mansion in Vogue Australia, a property later listed for sale with estimates reaching up to $40 million. It was described as ‘the Melbourne mansion with Gucci in almost every room’. 

Then, in 2024, 34 Irving Road, Toorak, was listed for $50m-$55m. It features five bedrooms, six bathrooms, a 10-car garage, pool, tennis court and more. While the property was listed in October, with expressions of interest required by November 19, there has been no confirmation of sale.