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re: krisbarry1 loves this mornings bulletin LV Living in aged care push
01Nov06

GOLD Coast housing group LV Living is pushing into the retirement market with plans to roll out a series of aged care projects that are expected to power the company to a $3.2 million profit this financial year.

LV Living has signed a heads of agreement with Retirement Plus Australia (RPA), a Sanctuary Cove-based company controlled by retirement industry veteran Stan Manning, that will see the companies cement their relationship which has been built on a joint venture project nearing completion in Toowoomba and another taking shape in Maryborough.

The deal will see LV Living take a 51 per cent interest in RPA, which already has projects under way at Mango Hill in Brisbane and at Tweed Heads, through the issue of 35 million of its shares.

The move is expected to expand the company's push into the high demand 'extra care' aged living sector, which LV Living said 'provides attractive margins that will have long-term benefit to the company'.

"RPA has a solid track record and expertise in providing unique and individual community environments for mature Australians with high quality and flexible services, hospitality and care options," said LV Living chairman Norman Anderson-Bell yesterday.

Mr Anderson-Bell said the 50-unit Toowoomba project was nearing completion and due for handover in December. A second project of 370 units is also planned for Maryborough, with construction expected to start next year.

LV Living is planning a $3 million capital raising to help fund its expansion plans.

Mr Anderson-Bell said the announcement marks a 'genuine turnaround situation' for the company.

LV Living posted a loss of $1.57 million in the 2005-06 financial year, which was 30 per cent more than the previous year.

Its $3.2 million profit forecast for the current year is expected to be followed by a $6.5 million profit in 2008.