Kiama Council signs off on long-running saga of Blue Haven Bonaira sale

Kiama Mayor Neil Reilly is confident he is leaving council with a legacy of a solid financial footing, after signing off on the sale of Blue Haven Bonaira for $95 million.

After 17 years on council, the mayor will retire at the September local government elections.

After signing the sale contract with Blue Haven’s new owner, Hall & Prior CEO Graeme Prior, Cr Reilly joked he “would sleep well tonight”. Settlement is scheduled for 1 November.

The sale of the residential aged care home has been a controversial topic which has dogged the current council almost since it came to office three years ago.

“It’s been a troubling time in the last two and a half years, it really has,” he said after the contract signing.

“Councillors have been conflicted with the decisions that they’ve had to make, but in the end, they made them.

“They were courageous decisions that will set our ship sailing in the right direction financially for years and years to come, for decades to come.

“The solutions of the past have become the problems of the present, but we’ve overcome those problems, and it’s going to benefit the people who reside in our community and those who reside in our aged care facility; everyone will benefit. It’s a win-win.

“This sale is a positive outcome for our community and our council.”

Mr Prior, who joined the fledgling business in 1992 with partner Michael Hall, assured Blue Haven residents and staff, as well as the wider community, that there would be no drastic changes to the operation of the aged care home, other than improvements.

He said the staff’s jobs were “very, very safe” and the company would like to increase their employment over the next two to three years.

Hall & Prior has grown from a single family-owned nursing home to operating 13 residential aged care homes across Sydney and regional NSW and 23 aged care homes in Western Australia.

“I came down here one weekend to have a bo-peep and I was really impressed, super impressed,” Mr Prior said.

“I was thinking, how good is this? Also, the natural beauty of Kiama affects your decision-making; it’s God’s country.

“But it’s [Bonaira] only four years old; the whole thing is brand new.

“The combination of NSW country – we’re country people – the council as a partner, the natural beauty and being only a very young facility was very attractive.”

Mr Prior said the company’s priority was the continuity of care to residents.

“Life goes on for them as if it’s the same. That’s the most important thing, that their care needs, both clinical and personal, are met every minute of the day,” he said.

“There’s always room for improvement in today’s world and we’ll look at how we can improve it.”

Hall and Prior is also keen to expand its Home Care service from 2025, which it views as “extremely essential” for the community.

Council CEO Jane Stroud has previously said the decision to sell Blue Haven Bonaira was a “monumental one” for the council.

She said the sale price had been impacted by several key factors, including building defects, bathroom design concerns, drainage and cladding.

“These are not new concerns and Kiama Council has been upfront about these matters and the history of the myriad issues associated with the Blue Haven Bonaira build and the ongoing operational losses for three years,” she said.

“I am looking forward to supporting the staff of Blue Haven to transition safely and seamlessly to their new employer, who is an expert in the field of aged care, and to supporting the organisation post the divestment to refocus on core council business and meet the NSW Government-imposed Performance Improvement Order.

“Kiama Council has had a rich tradition in aged care but there is a bold future of the organisation in a new direction, and I am relieved to see the service taken on by specialists in the industry.”

At council’s Tuesday meeting, councillors also resolved to pursue legal action concerning the building defects.