AVEO'S STRENGTH IN AGE
Written on the 9 February 2015 by Laura Daquino
AVEO Group (ASX: AOG) has added a 50 per cent stake in two allied health businesses to its suite of aged care facilities, and sealed partnerships with three east coast aged care providers.
The owner, operator and manager of retirement communities today announced its acquisition of a 50 per cent interest in the two allied businesses, Mobile Rehab and The Physio Co, together with a finalisation of 'in-home care' service alliances for its villages across Australia.
The company, which rebranded from FKP Property to Aveo last year in line with its divestment in non-retirement assets, expects its aged care services to generate earnings of $8 million by financial year 2018.
AOG CEO Geoff Grady says his company is driven to provide greater living choices for Australia's ageing population. AOG facilities are currently home to approximately 12,000 residents.
"An investment in the allied health sector and particularly into businesses that are exclusively focused on the provision of services to the aged is a significant strategic initiative for Aveo, underpinned by our commitment to grow with older Australians by inspiring greater living choices," says Grady.
The finalisation across retirement villages also announced today refers to increased levels of low care and support services to residents, on a revenue or profit share basis.
AOG announced its partnership with Royal District Nursing Service (RDNS) in June last year, originally including 22 villages and now comprising of an additional 11 villages in New South Wales and 14 villages in Victoria.
RDNS provides in-home support and healthcare programs to 47 of AOG's 75 retirement villages. In Queensland, this service is provided by RSL Care to 15 villages, and an additional 10 Victorian villages receive care services from St Ives Group.