Retirement village owner & operator Arvida Group Ltd said today it would buy 3 retirement villages in Tauranga & Queenstown for $180 million from interests controlled by Fraser Sanderson, a longtime developer.
The villages are Bethlehem Country Club & Bethlehem Shores, 8km up the coast from Tauranga, and the Queenstown Country Club in Shotover Country, Queenstown.
Trading in Arvida’s shares was halted today for it to complete a $50 million share placement at $1.25/share. It will follow up with a $92 million 1:5.7 pro-rata renounceable rights issue at $1.15/share. Both the placement & rights issue are fully underwritten.
The rights issue will close on 15 July and the acquisition is expected to be completed on 31 July.
The vendors of the 3 villages will get $10 million of new Arvida shares issued at market price, and the company will raise $32 million of bank debt.
Arvida chair Peter Wilson said the 3 villages all had development potential and would be immediately accretive to earnings.
Attribution: Arvida release.