With 63% of private aged care facilities being single premises operators, investment analysts state the private aged care sector is headed for consolidation with five likely winners.

They tip Opal, Regis, Estia, Allity and Japara being the dominant private aged care operators. Bupa should also be mentioned; it is the largest but not a private aged care operated by definition.

Private aged care accounts for 40% of the 2,800 care facilities nationally, or 1,120 locations.

There is significant scope for consolidation, with Estia seen as the leader here as it requires significant capital. Regis is known as the ‘greenfield developer’ and Japara is the ‘brownfield developer’, both requiring less capital and more time.