Business Opportunity. Retirement Home / Village

The retirement home is situated in an established suburb in the north of Johannesburg.
3 000 m2: with 25 rooms (one room plus kitchenette, shower etc.) and 7 cottages as well as reception area, kitchen, lounge, dining room, medical aid room, scullery, hairdresser etc.
The elderly enjoy the patio and the beautiful garden as well as the activities which the retirement home offers.
The impression of the retirement home, is clean, friendly well looked after as well as a very 'homely' atmosphere.
Residents have their own furnishers in there room in order to feel content and comfortable.
The 'home' is run by the owner to the highest professional standard in a relaxed but well managed environment.
The residents are mainly semi frail to frail and therefore there are a total of 27 staff members working in shifts seven days a week. The staff nurses and three care workers are on duty during the day shift with the registered nurse during normal working hours and a stuff nurse and 2 care workers at night. Two medical doctors and a physiotherapist make house calls to resident on request, and a podiatrist calls every six weeks.
Although the retirement home does not have a separate frail care, the residents are cared and nursed for to the end in their own room. The seller has found over the years that residents prefer to remain in familiar surroundings with their own pictures and personal possessions, rather than be moved to a clinical hospital ward situation.
The business does not rely on passing trade, and have a waiting list of potential residents that are keen to move in. There was only once one room empty for 5 days in the 8 years, and the business is able to pass on all inflationary increases to their residents without pricing themselves out of the market. Therefore there is no reason to expect that the owner's income should deteriorate, and we feel that a 10 year DCF as laid out in our model, is a reasonable expectation for any new owner. The owner is able to forecast profits very accurately well into the future, because of the stable nature of the business.
The value is based from the seller on 2 elements:
The value of the land and buildings and the discounted monthly cash flow over a 10 year period.