Arvida Group Ltd confirmed on Wednesday that it’s settled its $180 million purchase of 3 retirement villages from interests controlled by longtime developer Fraser Sanderson.
Completion followed a $50 million placement & $92 million rights issue.
Arvida chief executive Bill McDonald said existing & new shareholders had strongly supported both facets of the capital-raising. The vendors were also issued $10 million of new shares, subject to escrow for 12 months.
“Achieving an 86.5% percent takeup rate in the rights issue tells us our investor base is very solid & supportive. This is important as we seek to deliver on growth opportunities. The balance of rights was subscribed at a 17% premium to the rights price, which also represented a significant endorsement.”
The 3 retirement villages are the Bethlehem Country Club, Bethlehem Shores, 8km up the coast from Tauranga, and the Queenstown Country Club in Shotover Country, Queenstown.
Mr McDonald said it was very positive to have added 3 high quality villages in key retirement growth areas to Arvida’s portfolio: “We have the opportunity to build over 500 new homes, including care facilities, in Tauranga & Queenstown through the acquisition. Our target annual build rate increases to 250+ from next year as we look to realise the value from this & our existing development pipeline.
“As part of the transaction, we have also transitioned the Sanderson construction team, allowing us to continue development at these villages.”
Attribution: Company release.