More deals tipped as Singapore tycoon Goh Geok Khim snaps up Domain stake ASIAN tycoon Goh Geok Khim and AMP Capital are on the hunt for more acquisitions after his Singapore-listed investment company snapped up a near-half stake in top-three Australian residential aged-care services player Domain Principal Group. Domain is the third-largest private provider, with 55 facilities that have more than 4500 beds across NSW, Queensland, Victoria and Western Australia, and it wants to expand its $600 million portfolio as the highly fragmented industry consolidates. More deals are tipped, with Macquarie Group recently appointing investment bank Greenhill to offer its 44 per cent stake in No 2 aged-care operator Regis Group. Regis has about 4700 beds. The largest private player is British-controlled Bupa, which acquired Innovative Care last December to lift its empire to about 5600 beds. The top five providers have a combined market share of just 15 per cent of Australia's 182,000odd beds, and are likely to dominate in coming years. AMP Capital head of aged care Sally Evans would not comment on specific plans for the recapitalised group but said that, as an investment manager, "we look at all opportunities that are available." Church and charity groups provide about two-thirds of aged-care beds but many smaller operations have come under pressure, while bigger players benefit from their scale. Structural inefficiencies in the fragmented area were "probably not sustainable as we think about growth of the industry," Ms Evans said. About $25 billion in capital is required to replace obsolete properties and increase bed numbers by 40 per cent over the next decade as the population ages. Much of the funding could come from offshore, as sophisticated global investors are comfortable with the industry and Ms Evans said they were "certainly interested" in investing in Australia. But there are no substantial listed players presently investing in the sector. "The industry probably needs to mature a little more before we will see that as an option," Ms Evans said. Singapore-listed GK Goh Holdings' deal to take a 47.62 per cent equity stake in Domain was reported by The Australian online. The Asian group's interest is being bought for $136.7m from two trusts run by AMP Capital. After the deal, the Singaporean company and AMP Life will have equal holdings, with Domain's management holding the balance. GK Goh Holdings and AMP Life will each put up a further $25m to back Domain's growth. Domain earned about $61.5m on revenues of $395.9m in the 2012-13 financial year and GK Goh Holdings said its purchase valued the group on an enterprise value/earnings before interest, taxes, depreciation and amortisation ratio of 9.1 times, indicating its bullish growth plans. Domain's business has had occupancy rates of more than 90 per cent and local executives said the purchase ratio was even higher. Goh Geok Khim, the executive chairman of GK Goh Holdings, said: "Demand for aged-care services will continue to rise for the next few decades in Australia." The company's managing director, Goh Yew Lin, said Domain was one of the best names in Australian aged care, with a strong management team and an excellent portfolio.