After years of speculation and local controversy, the Kiama Council has finally announced that a buyer has been found for the sale of aged care residence Blue Haven Bonaira.

The preferred tenderer is Hall & Prior Health and Aged Care Group, a provider of residential aged care both in NSW and Western Australia. 

Until the announcement the identity of the buyer had been a well guarded secret.

The decision was made at an Extraordinary Meeting in late May when the Council voted to proceed with the Hall & Prior offer and to begin drawing up a sales contract.

Kiama Mayor Neil Reilly welcomed Hall & Prior to Kiama: “I’m glad to see Blue Haven Bonaira be acquired by a high-quality aged care provider who already operates a range of facilities in both NSW and Western Australia.”

“I welcome Hall & Prior to Kiama and the Illawarra region and look forward to a fruitful working relationship with them as we transition the business into their capable hands.”

The Kiama Council has been given a Provisional Improvement Order from the NSW government over the state of its finances. To stave off administration, the council made the tough decision to sell Blue Haven Bonaira, which was included in the 2023-2024 Council Budget projections, the Council’s Long Term Financial Plan and the Draft Budget for 2024/25.

Hall & Prior currently operates 13 residential aged care homes across Sydney and regional NSW, and 23 aged care homes in Western Australia.

Once the contract has been finalised, it will go back to Council for endorsement. This is expected to happen in July. Following final agreement and completion of pre-settlement conditions, both parties anticipate settlement in September 2024.

Council recorded an overall loss of $7.7m for 2022-23, down from $10m the year before. Total current liabilities are $154m (2023).

Taking the sale proceeds, it will now be able to pay the outstanding $15m debt to TCorp, the financial services partner to the NSW public sector.

The latest Performance Improvement Order from Local Government Minister Ron Hoenig means the council has three years to get its budget into surplus and apart from the sale of Bonaira it can’t sell assets to do it.

The new PIO requires the council to become financially viable by 2026-27.

In a joint statement Labor councillors Imogen Draisma and Stuart Larkins said the sale of Blue Haven Bonaira was needed for the Council to meet its financial obligations.

“If the Council goes into administration, we not only lose local control but these hard financial decisions would be made by a distant department with no interest in our highly valued local amenities, our staff or our township,” Councillor Stuart Larkins said. 

Blue Haven Bonaira is a 134-bed residential aged care facility, which includes 59 Independent Living Units, Matterson Hall, Barroul House café, a chapel, a gym and hair salon.