Headline: MFS sells aged care stake and pockets $12m

MFS Diversified Group has sold out of its investments in the Guardian Aged Care Group, which was acquired through its takeover of property developer Villa World.

The company has offloaded its 50 per cent stake in the group to its joint venture partner Bill Summers for about $15 million.

MFS Diversified will book a profit of more than $12 million from the deal. It will also give MFS Diversified a cash injection of more than $26 million through repayment of an $11 million mezzanine debt facility.

"The sale is in line with our strategy of exiting the joint venture at a time when a number of facilities have been completed and we are able to realise a development profit," said MFS Diversified chief executive Brent Hailey.

"Further, there was a growing accommodation bond liability which was impacting on the group's balance sheet and would continue to grow."

"The cash injection into the core business of MFS Diversified will enable it to pursue more acquisitions at a point in the property cycle when a significant number of opportunities are arising."

Mr Hailey said MFS Diversified planned to undertake construction of two new facilities for Guardian at Browns Plains, in Logan City, and at Lake Street in Varsity Lakes.

He also said MFS Diversified was committed to the development, management and construction of future projects for Guardian.