Arvida (NZX:ARV):The Company strikes a deal to purchase Arena Living

Highlights

  • NZ’s famous retirement village operator, Arvida Group has disclosed acquiring the whole of Arena Living Holdings, which runs a group of retirement villages across Auckland and Tauranga.
  • The purchase price is set at NZ$345 million and is expected to add NZ$32-34 million worth of underlying profit to ARV’s kitty in FY22.

Arvida Group Limited (NZX:ARV) has announced signing a deal to purchase all the shares of Arena Living Holdings Limited.

Operating 32 retirement villages across New Zealand, Arvida Group is one of the leading operators of aged care facilities in the country.

NZ retirement village stock-ARV

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Arvida’s portfolio size to grow by 24% with this acquisition

ARV is all set to buy Arena Living Holdings for NZ$345 million. This acquisition would increase ARV’s portfolio size by 24%, thereby adding 648 villas, 340 apartments and 58 serviced apartments to its current portfolio.

Related Read: Which are the well-known retirement village shares in New Zealand?

It is noted that Arena Living, which is well established on a combined 48 hectares of land, runs six retirement villages based in Auckland and Tauranga, namely Mayfair Village, Parklane Village, Peninsula Club, Mt Eden Gardens, Knightsbridge Village, and Ocean Shores Village.

The said acquisition is likely to boost Arvida’s underlying profit by NZ$32 million- NZ$34 million in FY22, on a pro forma basis.

The acquisition is expected to be completed on 15 November and is funded through a mix of underwritten placement; rights offer as well as bank debt.

At the time of writing, Arvida Group was trading flat at NZ$2.080, on 15 October.

Bottom Line

Arvida Group continues to perform strongly, with a prime focus on the growth and expansion of its care operations and development activities.

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