Aged care just gets hotter. Ten days ago aged care operator Japara launched on the ASX and their share value hit $2.57, valuing the company at $707M. This is 35% up on its expected $500M valuation. Two months ago Japara was talking about $400M.

This means Japara has done the hard work for private operator Allity, educating investors on value.

Consider this: Allity has potentially created new value of $290M in 16 months for its private investors. But they have to list on the ASX to realise this value - made easier by Japara.
It was early last year that Allity was created as a new company by private equity firm Archer Capital to purchase Lend Lease’s 31 aged care facilities for $270M. Last month they also purchased ECH’s 10 SA care facilities for a reported $140M.
All up this totals 43 sites with 3,500 beds compared to Japara with 35 sites and 3,131 beds. So in 16 months Allity has invested $410M and now has business worth approximately $700M, a potential return of $290M.
It is interesting to look at who invested in Japara; they attracted a good mix of institutional investors and wealthy private families. (Catholic Super, UBS and the Myer family have had a long association with Japara). The major Japara investors are:

• JP Morgan
• National bank
• HSBC
• Catholic Super Fund
• Citicorp

• UBS
• BNP Paribas
• The Sudholz Family (Japara related)
• The Myer Family
• Robert Peck and Yvonne Van Hartel (super fund)
• The Reid Family
• The Dean Family
The Klempfner Family