Kiama Municipal Councillors last night unanimously endorsed a final letter of variation to the sale agreement for Blue Haven Bonaira to Hall & Prior Aged Care.
The revised agreement adjusts the gross sale price from $95 million, as initially agreed upon in July 2024, to $89 million. The Council says the adjustment reflects various building matters identified during the due diligence process, which involved multiple engineering assessments to ensure the site met all necessary standards and building requirements.
The Council says the settlement for Blue Haven remains on track for February 2025.
The adjusted price results in a surplus of $19 million, from which Council’s $15 million TCorp debt will be cleared, said Kiama Council Mayor Cameron McDonald.
“I thank the Councillors for their collective decision to move the sale of Blue Haven Bonaira forward,” said the Mayor.
“This has been a long and challenging process; any contract and sale of a going concern business this size, with a long and proud history, is complex and has many moving parts. Ultimately the adjustment to the price was necessary to reflect the reality of the building’s condition and the work required to address these issues.
“This was not a decision made lightly, but one that demonstrates our Council’s commitment to transparency and ensuring the best possible outcome for our community.”
Mayor McDonald said the divestment was critical to the Council’s path toward financial sustainability, as outlined in a Performance Improvement Order from the NSW Office of Local Government.
“It allows Kiama Council to refocus on our core responsibility of delivering municipal services while ensuring Blue Haven Bonaira has the support it needs to thrive under Hall & Prior’s experienced care,” he said.
“To be frank I think this Council (and future councils) can learn significant lessons from this substantial project. Areas for improvement include project management, asset oversight, better business cases, operational planning and improved reporting to Council on funding and variations.”
“I’m pleased to see this transaction moving closer to settlement in February, and I thank our staff and community for their patience and understanding.”
Hall & Prior CEO, Graeme Prior and his team were onsite at Blue Haven Bonaira this week to meet with staff, residents, and their families as part of the transition process.
“The Hall & Prior team enjoyed meeting with Blue Haven Bonaira staff and residents onsite and online to discuss matters that will ensure a seamless and respectful transition for staff, residents, and the local community,” said Mr Prior.
“As an experienced aged care provider, we are focused on ensuring the sale process is handled with care, transparency, and professionalism. This includes safeguarding the continuity of care and maintaining the high standards of service that residents, their families, and carers expect.”
