NZX-listed retirement village operator Arvida Group has agreed to buy two villages in the Bay of Plenty for a total of approximately $40 million.
The homes are Bethlehem Views in Carmichael Road, and Copper Crest in Pyes Pa. The company is also buying Lauriston Park in Cambridge as part of the same transaction. Completion is expected in early October.
"We certainly see the BOP as the key growth area for retirement in NZ," said chief executive Bill McDonald. "It's an area where we have a reasonable focus and we're certainly pleased to add to our existing footprint in the BOP."
Arvida-operated Glenbrae, in Fenton Park, Rotorua, where it had just completed building 11 apartments and is currently extending community facilities and remodelling the entranceway to bring it up to a higher standard.
The latest acquisitions will bring its footprint to 25 villages across NZ, with a total of 1,384 care beds and 1,248 retirement units.
Bethlehem Views is a dedicated care facility, which included 17 rest home beds, 20 dementia beds and 51 hospital beds. Overall occupancy at Bethlehem Views has been over 98 per cent for the last 12 months. Bethlehem Villas will remain a specialised high-end care facility.
Copper Crest and Lauriston Park are retirement facilities.
"Lauriston Park and Copper Crest offer meaningful brownfield development opportunities, including the ability to develop our care offering at these villages over time," said Mr McDonald.
"We are excited by the potential in terms of all properties being ideally suited for roll-out of our care-suite strategy."
Copper Crest currently has approximately 100 Villas and the company expected to continue developing 40 additional villas, and 70 serviced apartments and care suites over the next couple of years.
"We'll continue the rollout of villas there," said Mr McDonald. "And once we start operations we will also go into a design and consenting phase for a care facility on site."
Arvida chairman Peter Wilson said the acquisitions were on strategy and provided the company with a presence in key NZ regions experiencing high growth in aged care and retirement living.
"The villages are all of a very high quality and represent the best in New Zealand retirement and care facilities. We continue to see a range of acquisition prospects and will continue to actively consider opportunities that meet our strict criteria in terms of location, quality of assets and current management, potential for development and earnings accretion."
• Listed on the NZX in December, 2014
• Villages in Tauranga, Rotorua, Auckland, New Plymouth, Masterton, Palmerston North, Waikanae, Nelson, Blenheim, Christchurch, and Rangiora.