According to the latest Stewart Brown benchmarking report in residential aged care, the average RAD is now $285,404 nationally.

Estia has 48 facilities covering 4,010 beds, with a significant number in regional locations and therefore not benefiting from prime metro locations where RADs up to $1.5 million are being reported.

Estia also generated an EBIT profit margin of 20.7 per cent ($61.8 million) on revenue of $297.5 million, taking it to the top end of all aged care operators. After tax it netted $44.6 million. This delivers roughly $79,000 revenue and $16,000 net profit before tax per bed, double the average of the sector.

It was October 2013 when Marcus Darville (pictured), led Quadrant Private Equity to purchase Estia Health, which had 10 facilities across Melbourne, for a rumoured $175 million. Estia itself was just seven years old. Quadrant rapidly acquired about 28 extra facilities and then listed on the Stock Exchange last December for $1 billion – 26 months after starting the journey.

Darville achieved a similar result with Summerset Retirement Villages in NZ.