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Highlights
- NZ has 36,300 retirement village units and is expected to have further demand of 26K in the upcoming 10 years period.
- For further business growth, radius recently notified on acquiring Clare House.
- Arvida notified of the closing date of the recently opened Rights Offer.
The COVID-19 pandemic has been wreaking havoc in everybody’s life since last year, and elderly people have been at their receiving end. However, retirement villages in NZ have been doing well and proving a safe haven for the vulnerable population.
The nation has around 36,300 retirement village units and is expected to have further demand of 26K in the upcoming 10 years period.
On the back of the booming retirement villages sector, let’s have a look at 2 stocks and their updates.
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Radius Residential Care Limited (NZX:RAD)
A provider of good-quality hospital, rest home dementia care Radius Residential Care Limited of late provided the market with an update regarding the Clare House acquisition.
The purchase price was valued at NZ$14.5 million, which was funded by the new ASB NZ$62-million debt facility.
Why consider retirement village stocks before 2021 ends?
Clare House has 69 care beds, 18 serviced apartments and 7 villas to Radius Care’s present portfolio of 1,715 beds and 76 retirement villages at 22 properties.
On 5 November, Radius Residential last traded flat at NZ$0.53.
Related read; Radius Residential (NZX:RAD): What are its new banking facilities?
Arvida Group Limited (NZX:ARV)
With 32 retirement villages all over the nation, Arvida Group Limited recently announced the closing date for the Rights Offer.
On 22 October, the Company had issued an offer document detailing a pro rata renounceable offer of new shares at NZ$1.85/share to current stakeholders. The Offer was opened on 27 October and if a stakeholder wished to take up all or few rights, the person should make sure that application and payment is made by 5:00 pm on 8 November.
The Rights Offer would partially provide the funding of the Arena Living portfolio, including six retirement villages in cities like Auckland and Tauranga.
Arvida Group was at NZ$2.05, up by 2.50%, as on 5 November.
Also read; Arvida Delivers Strong Results In Quarterly Report
Bottom Line
Retirement villages aim towards changing the ageing experience for the vulnerable population. To achieve it, they keep on growing and expanding their operations via a diligent selection of projects and make acquisitions that could provide long-duration value.