Metlifecare sells Nelson village for $29m
BUSINESSDESK: Metlifecare, the retirement village operator, has sold its Oakwoods village in Nelson for $29 million to a syndicate of South Island investors.
The sale is in line with the company's portfolio rationalisation scheme and plan to focus on the North Island as part of its merger with Vision Senior Living and Private Life Care announced in July. The sale is only subject to procedural matters, with settlement is expected on November 30.
"As communicated to the market previously, it was important for Metlifecare to firstly reduce its debt by a significant amount. This sale achieves that objective," director Alan Edwards says.
"Following settlement of this transaction we can shift our focus to the development of our existing greenfield and brownfield opportunities."
Oakwoods buyers include Steve Davis, the village's manager who will continue to run it and head the syndicate after the sale.
This is the second retirement village the Auckland-based company has sold. In September it sold its Ilam Park site in Christchurch to rival Bupa Care Services New Zealand for $9.4 million.
Metlifecare shares are up 0.7% trading at $2.95 and have gained 30% this year.
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Comments and questions2
Metlife has ditched what is presumably a financially unrewarding village to a bunch of people who won't be able to support retirement and compliance costs with the same ease that a large company can. Good luck to them.
Pablo ,
You wouldnt know cr*p from clay ! the village is fully operational and under good management will make a bucket load $$$.The investors will be delighted to get a 10 to 14 percent cash return .
Compliance costs are far higher when your a dumb corporate ! these syndicates have far fewer over heads and less d--k heads running them .