Salvation Army sells retirement homes

The Salvation Army announced today it will sell its 11 aged care centres to Retirement Care NZ Ltd for an undisclosed sum.

The sale is the latest in a string of takeover activity in the retirement sector as big offshore players move to consolidate what has been a highly fragmented industry.

Retirement Care NZ Ltd is the parent company of Eldercare NZ, which was bought by global investor Macquarie Bank from Abano for $63.5 million in May.

Today's sale, which is subject to regulatory and health board approval, is expected to be completed by November.

Craig Percy, Eldercare's general manager, said the Salvation Army centres were a "good fit" with its existing 14 aged care facilities in New Zealand.

- NZPA