Havelock North retirement village sold

Mary Doyle Lifecare in Havelock North. Photo/File

The Mary Doyle Lifecare retirement village in Havelock North has been sold, amid plans for new construction on the site.

Hurst Lifecare has sold the village, which included a rest home, hospital and dementia care unit to Arvida.

The sale was part of a package including Strathallan Lifecare in Timaru and half of Wellington's Village in the Park, which totalled $106 million.

"Meaningful brownfield development at Village at the Park and Mary Doyle includes 110 consented new units in the pipeline," Arvida chief executive Bill McDonald said.

"The new units will be progressively developed over the next four years and include developments nearing completion."

The Havelock North village would be home to 44 of these units, with two already under construction.

The purchase price was to be paid partially in Arvida shares, the company said.

Arvida now has 29 villages around the country, although Mary Doyle would be the first in Hawke's Bay.

The Hurst family, who own Hurst Lifecare, were featured on this year's NBR rich list, with wealth totalling $105m.

"We are delighted to add another three quality villages to our portfolio," Arvida chairman Peter Wilson said.

"Hurst Lifecare's desire to receive Arvida shares is a strong endorsement of our strategy from a long-standing industry participant."

Mary Doyle was built in 1996 on the site that once housed the DB Te Mata Hotel.

The village consisted of a rest home, hospital, dementia care unit and more than 200 apartments and villas.

Arvida would fund the acquisition through a combination of bank debt and new equity raised.

The Auckland-based company was listed in 2014 and has already acquired five new villages this year.