Archive | Acquisition

Blackstone’s Arena Living buys Mt Eden Gardens

US asset managing giant Blackstone Group LP’s local retirement village owner & operator, Arena Living NZ Ltd, has added a 6th village to its portfolio, Mt Eden Gardens. The price hasn’t been disclosed.

Blackstone bought Lendlease Group’s 5 villages in 2016 and changed the name to Arena Living Ltd. 4 of those villages are in Auckland – the Knightsbridge, Mayfair & Parklane on the North Shore and Peninsula Club at Whangaparaoa – and the other, Ocean Shores, is at Mt Maunganui. Lendlease bought them from Bev Collins’ Primecare retirement village business in 2005.

This time the acquisition is from 2 directors of construction group Arrow International Group Ltd, Ron Anderson & Bob Foster, who were instrumental in establishing Vision Senior Living Ltd in 1999, and Aaron Armstrong, an Auckland chartered accountant who was also an original Vision director.

Vision & Private Life Care Ltd were merged into Metlifecare Ltd in 2012, but the 2 Arrow founders maintained retirement village interests through other companies.

Mr Armstrong became a director of Arena Living last June and is a director of Blackstone’s new Mt Eden Gardens company.

Mt Eden Gardens has 36 apartments, and Arena Living chief executive Richard Davis said it had a reputation as an excellent retirement village.

He said Arena Living had spent the last 2 years improving its original 5 villages and ensuring it was resourced to deliver better living experiences for all its residents: “Major building projects, refurbishments & ground upgrades, along with establishing a leadership team, and streamlining processes within the company have all been key to ensuring the company is in a strong position to be able to deliver world-class retirement living in New Zealand.

When Blackstone purchased Lend Lease’s 5 retirement villages in 2016, the intention was to create a standalone New Zealand-based business committed to delivering world-class senior living. We have transformed the management of the 5 original villages, alongside a continual programme of investment & improvements.

“Our first major milestone was the introduction of a fixed-for-life levy in July 2017. This transition to a fixed levy has given our residents a greater level of financial certainty and removed the worry of increasing costs of living. The new levy was approved by 98.9% of residents across all 5 villages, which is an overwhelming majority. And the feedback we have received to date across all aspects of village life has been very positive.

“Our goal is always to enable our residents to relax & enjoy their lives, while we take care of the rest.”

Before returning to New Zealand from the UK to head Arena Living, Mr Davis was chief executive of LifeCare Residences UK and board chair of the Associated Retirement Community Operators. He’s previously held senior roles at Metlifecare in New Zealand.

“Our industry is growing rapidly as Kiwis live longer and seek an environment where they can enjoy independent living, friendship, freedom & privacy. Arena’s point of difference is our focus on high quality, and we’ll continue to look for opportunities that help us meet the strong demand for quality lifestyle options.”

Link: Mt Eden Gardens

Earlier story:
17 February 2016: Blackstone buys Lendlease’s NZ retirement villages

Attribution: Company release.

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Metlifecare sells Wairarapa Village

Metlifecare Ltd has agreed to sell its Wairarapa Village in Masterton to a group headed by Mark Durling for $6 million cash, subject to 2 conditions to be satisfied by 31 May.

The first is to get the statutory supervisor’s approval, including relating to the buyer’s financing & security arrangements, and the second is the transfer of the required Ministry of Health & district health board contracts for operation of the village’s care home.

Subject to satisfaction of those conditions, settlement is scheduled for 30 June.

Metlifecare chief executive Glen Sowry said last week: “Wairarapa Village operates in a market that has lower opportunities for growth for Metlifecare, due to local market dynamics & a less attractive real estate environment. This agreement presents an opportunity to reallocate the capital receipted from this sale to continue the company’s focus on greenfield & brownfield developments in high growth areas that represent stronger future yields.”

Mr Durling owns Medlands Beach Lodge Ltd, which runs the exclusive Medlands Beach Lodge on Great Barrier Island, and is a director & shareholder of NZ Life Care Ltd. He was previously a regional operations manager for Oceania Healthcare Ltd.

Attribution: Company release.

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Propbd on Q Th25Jun15 – Barfoot auction results, Swney jailed, quake-prone buildings law, city rail link start, Arvida buys

Wide array of units sell at Barfoots
Swney jailed for 5 years 7 months
Select committee seeks feedback on quake-prone buildings bill changes
First rail project works to start in October
Arvida buys Aria Villages

Also this morning: I’ll be reporting on progress at the Town Hall meeting of Auckland Council’s governing body, where the rates for the next year and the 10-year budget are up in the air.

Wide array of units sell at Barfoots

7 apartments & townhouses, 2 units on cross-leases, 3 units sold prior, another 3 in a package, an Ellerslie commercial property and a Panmure section sold at $943/m² were among the still-heavy lineup of residential properties sold at Barfoot & Thompson’s auction yesterday. Auction results:

Grey Lynn, 3 Millais St, sold for $1.95 million, Jill Jackson & Emma John
47 Wakefield St, unit 504, sold for $185,000, Aaron Cook & Betty Shao
Glendowie, 119 Riddell Rd, unit 2, sold for $7126,000, Kelly Midwood
SugarTree, 27 Union St, unit 713, sold for $514,000, Livia Li & Alan Guo
Tower Hill, 1 Emily Place, unit 2D, sold for $611,000, Stephen & Leo Shin
Ellerslie, 95-97 Main Highway, commercial property sold for $1.625 million, Murray Tomlinson
Panmure, 109 Pilkington Rd, 880m² section with cottage, sold for $830,000 at $943/m² land, Rain Diao
Argent Hall, 2 Eden Crescent, unit 13E, $280,000 offer made at pre-auction, sold for $311,000, Stephen & Leo Shin
Remuera, 674 Remuera Rd, unit 2, sold prior, Dennis Dunford & Kathy Bower
207 Federal St, unit 1210, sold prior, Stephen & Leo Shin
St Heliers, 22 Devore St, unit 2, sold prior, Karin Cooper
Pt Chevalier, 1038 & 1040 Great North Rd, units 1, 2 & 3, sold for $2.575 million, Heather Hannah & Dee Huxtable
Pt Chevalier, 357 Pt Chevalier Rd, unit 3, cross-lease, sold for $789,000, Rosemary Giborees
Birkdale, 8 Flynn St, unit 10, sold for $457,000, Kevin He & Zoe Zhou
Mt Albert, 14 Seaview Terrace, unit 2, cross-lease, sold for $587,000, Kim Tilly & Jo van Kan

Swney jailed for 5 years 7 months

Former Heart of the City chief executive Alex Swney (57) was sentenced to 5 years 7 months in jail yesterday on a representative charge of dishonestly using a document and tax charges.

has appeared in the Auckland District Court today. Mr Swney has been sentenced to five years and seven months’ imprisonment for charges brought respectively by

The Serious Fraud Office charged Mr Swney in April with the representative Crimes Act charge of dishonestly using documents to obtain $2.5 million. He pleaded guilty at his first appearance, admitting that while at Heart of the City he created fictitious invoices which, when submitted, resulted in payments into accounts controlled by him.

The Inland Revenue charges were in relation to unpaid tax of about $1.8 million plus penalties & interest.

Other stories this morning:
Select committee seeks feedback on quake-prone buildings bill changes
First rail project works to start in October
Arvida buys Aria Villages

Attribution: Auction, SFO.

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Arvida buys Aria Villages

Newly NZX-listed retirement village operator Arvida Group Ltd has conditionally bought the Aria Villages in Auckland for $62 million.

Arvida is raising up to $41 million of new equity through the issue of $6 million of Arvida shares to Aria Villages vendor shareholders, which will be subject to the same escrow arrangements as shareholders under Arvida’s IPO, and a $30 million underwritten placement at 84c/share.

The placement will be followed by a share purchase plan, up to a maximum of $5 million. The balance of the acquisition will be funded under Arvida’s existing debt facility.

The price represents an equity value:2016 financial year underlying profit multiple of 8.4x. Arvida expects the acquisition & associated equity raising to be dividend- & value-enhancing to Arvida shareholders, with 12% earnings/share accretion to Arvida’s 2016 financial year underlying profit on a pro forma basis.

Arvida chief executive Bill McDonald said the 3 villages had a strong care focus, 97% occupancy & brownfield development opportunities.

The 3 villages are Aria Bay in Browns Bay, Aria Park in Epsom & Aria Gardens at Albany, which have a total 350 residents. Mr McDonald said Arvida expected earnings improvement following the completion of new beds at Aria Gardens, selldown of newly completed apartments at Aria Bay and possible developments at Aria Bay.

Completion of the acquisition is anticipated in July. It’s conditional on statutory supervisor consents and obtaining district health board & Ministry of Health approvals.

Attribution: Company release.

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Infratil & NZ Super Fund enter new JV to buy RetireAustralia

Infratil Ltd and the NZ Superannuation Fund have entered into another 50:50 joint venture, this one to buy Australia’s largest privately owned retirement village owner & operator, RetireAustralia.

Infratil and the Super Fund bought Z Energy Ltd – Shell NZ Ltd’s distribution & retail businesses and 17.1% interest in the NZ Refining Co Ltd – from global energy company Shell in 2010. Their remaining 20% each on listing was locked in until the release in November of Z’s results for the half-year to 30 September 2014.

The 2 partners announced their Australian joint venture in a statement to the NZX & ASX after the markets closed on Christmas Eve.

Their agreement is to acquire 100% of RetireAustralia from JP Morgan Chase & Co and Morgan Stanley for $A640.2 million, with settlement scheduled for Wednesday, 31 December.

Australia media said early this year the vendors had contemplated listing RetireAustralia, but abandoned that option in August.

Infratil & the Super Fund will invest $A214.8 million of equity each and take over existing bank debt on RetireAustralia’s balance sheet for the remaining 30% of the investment.

The consideration includes estimated transaction costs of $A23.5 million and is subject to the usual completion adjustments for working capital & net debt. The acquisition price represents a multiple of 1.0x NTA.

RetireAustralia managing director Tim Russell founded Meridien Retirement Living (now RetireAustralia) in 2005 and built up a portfolio of 3700 independent living units & apartments through the acquisition of 28 retirement villages in New South Wales, South Australia & Queensland, with development plans for another 500 units. It is the largest privately held pure-play retirement operator in Australia.

Mr Russell spent 10 years in investment banking & funds management at Graham & Co and Bankers Trust before joining FKP Ltd as investments general manager in 2003. He was responsible for creating FKP’s real estate funds management business and had overall responsibility for its retirement business.

FKP, previously a property developer, also became Australia’s biggest retirement village operator a decade ago. Through the Retirement Villages NZ Ltd partnership with Macquarie Bank, FKP bought a majority stake in NZX-listed Metlifecare Ltd, exiting at the end of 2013 after the merger of 3 retirement village companies into an enlarged Metlifecare.

Out of that selldown, Infratil & the NZ Super Fund acquired 19.88% of Metlifecare each.

Infratil chief executive Marko Bogoievski said in the Christmas Eve statement: “RetireAustralia provides a strong platform in an Australian sector that offers very attractive long-term growth prospects…. The business has the potential to become the market leader in the retirement living sector.

“RetireAustralia is led by an experienced management team and comes with a strong development pipeline & a mature existing portfolio. Underlying ebit for the June 2015 financial year is forecast at $A35-40 million. [Underlying earnings before interest & tax is a non-GAAP financial measure which removes the impact of non-cash items, deferred tax & the impact of the company’s capital structure.]

“We have spent a considerable amount of time evaluating the sector in Australia and identified RetireAustralia as a high quality access point, given the profile of the assets and the capability of the management team.”

Super Fund chief investment officer Matt Whineray said: “We are pleased to be increasing our exposure to the retirement village sector in Australia. The sector’s attractive demographics & growth opportunities make it a good fit for long-term investors such as the NZ Super Fund.”

RetireAustralia chief executive Mr Russell said: “My preference has always been to find owners like Infratil & the NZ Super Fund who have the necessary experience & access to capital to enable a long-term focus for the business as it enters the next phase of growth.”

Attribution: JV release.

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AMP targets retirement village company Summerset

Published 21 November 2005


AMP Capital Investors (NZ) Ltd said today it would make a full offer to buy New Zealand’s largest private & unlisted retirement village operator, Summerset Holdings Ltd (John O’Sullivan, chief executive Norah Barlow, based in Paraparaumu).




Summerset has 8 villages containing 777 villas, apartments & serviced apartments & care centres. It develops, owns & operates its villages from a corporate head office in Paraparaumu and is currently building 2 villages and completing the development of 2 existing villages which will provide 574 more units & 73 beds.


AMP Capital Investors managing director Catherine Savage said Summerset was the third-largest retirement village operator in the country, supplying quality & affordable retirement living in various accommodation options for mature New Zealanders, whether in care or in their own home within a village.


Most recently, Summerset was involved in the rezoning application with Perrendale Holdings Ltd for a bulk retail centre & retirement village west of State Highway 1 at Warkworth. The retirement village was allowed but the commissioners turned down rezoning for the bulk retail site.


Ms Savage said: “This acquisition allows us to satisfy investor demand for quality alternative assets. The retirement care sector is a growth sector underpinned by an increasing proportion of mature New Zealanders seeking to enjoy the benefits offered by retirement villages.


“The purchase of Summerset allows AMP Capital to leverage off its diverse sector expertise across private equity, property & infrastructure. It also provides us with a strategic platform to be a significant player in the consolidation of the industry over time. This investment also supports AMP’s brand position of helping people manage their financial wellbeing to enjoy the future they want.”


Mrs Barlow said she was excited about the opportunities AMP Capital would provide the retirement village operation, and she looked forward to an excellent working relationship with the investment company. She said she remained totally committed to the success of the Summerset business, as a director of Summerset Management Group Ltd.


Summerset has been advised in the process by the investment banking division of Forsyth Barr.


The retirement village deals come as an AMP subsidiary, AMP Property Portfolio Investments Ltd, began mopping up remaining shares in Capital Properties (NZ) Ltd, after going unconditional last week, and Macquarie Bank Ltd got to 68% in its takeover of Metlifecare Ltd.


Website: Summerset Group


AMP Capital Investors



Earlier stories:


1 September 2005: Rodney commissioners accede to Transit view of development at Warkworth


6 June 2005: Developer questioning Transit’s role asks: Who’s in charge?



If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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St Laurence sells Elrond interest to majority owner Tomlinson

Published 20 September 2005

St Laurence Property & Finance Ltd has entered into a conditional agreement to sell all of its interest in Elrond Group Holdings Ltd for $16.5 million. The book value of the investment at 31 March 2005 was $4.5 million.St Laurence Property & Finance chief executive John Mallon said the sale price was subject to an adjustment for any changes in Elrond’s net tangible assets between signing of the agreement & settlement. Elrond will also repay a loan St Laurence made to it.The buyer is Qualcare Holdings Ltd, a company owned by Elrond’s majority shareholder, Greg Tomlinson, and Ironbridge Capital, an Australasian private equity fund manager.Mr Mallon said conditions included the simultaneous purxchase of other Tomlinson aged-care & retirement village assets by Qualcare Holdings. Settlement is expected before Christmas 2005. Elrond owns 7 retirement village sites, including aged-care facilities, in the upper North Island. Mr Tomlinson is a director of the Redwood retirement village group, Living Care Ltd, Hermitage Holdings Ltd & Marina Cove Ltd.John Mallon, St Laurence Property & Finance’s chief executive says, “We are very happy with the price that has been offered for our interest in Elrond and it is consistent with our expectations for this investment.” St Laurence Property & Finance is an active property investor & specialist provider of property-based debt & equity financing. “The proceeds from the sale of Elrond will be applied by the company to further investment & financing opportunities, with a number currently under consideration,” Mr Mallon said.


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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Selwyn buys Roskill Masonic village

Published: 9 September 2005

The Masonic Village in Mt Roskill has been bought by the Selwyn Foundation & its wholly owned company, Selwyn Heights Retirement Village Ltd, for an undisclosed sum. The unconditional deal is due to settle on 1 November.

The 5.1ha Masonic Village complex was built in 1960. It has 46 retirement units, a 117-bed resthome & a 92-bed hospital. Sale proceeds will go back to the Freemasons, who own it, and be used for charitable purposes.

Selwyn chief executive the Rev Duncan Macdonald said changes to the Masonic Village would be improvements, including more facilities: “People matter to us, just as they have mattered to the current owners of the Masonic Village. We look forward to working with the people who live here & their families, to develop & deliver new services & facilities.”

The independent Selwyn Foundation, part of the Anglican Church, is the largest not-for-profit aged-care charity in New Zealand. It owns 3 retirement villages – Selwyn Village in Pt Chevalier, Selwyn Oaks at Papakura & Selwyn Park in Whangarei – and provides management services to other resthomes, retirement villages & hospitals.

If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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