A new nursing home joint venture is expected to create 1,300 new jobs on the back of a £40 million (€50.78 million) investment.

The Sandown Group, the subsidiary of the Australian healthcare provider, Moran Group, has reached agreement with Mowlam Residential Care to make the investment in 24 nursing homes around the State.

Mowlam have secured 12 sites, and some of these have already been granted planning permission. The company is in negotiation for a number of other sites, with construction of the first home expected to begin within the next month. The jobs will be mainly for staff working in the homes.

Grant Thornton, chartered accountants, have undertaken to raise funds from investors interested in the project. These backers will be entitled to avail of tax breaks under legislation contained in the Finance Act 1998 relating to new nursing homes.

While investors are being invited to participate in the venture, the majority of the funds will be put up by the two companies, said a spokesman.

The Sandown Group will operate the homes, each of which will have a minimum of 50 beds. The group currently operates 40 homes in Northern Ireland and the UK.

Its parent company, the Moran Group, is the largest privately owned healthcare company in Australia, managing almost 4,000 nursing home beds. The move into the market here is part of a European expansion.

Mowlam Residential Care is an Irish residential and retirement care company.