Arvida $30m capital raising filled
Institutions have taken big chunks of a $30 million capital raising by retirement village operator Arvida Group to help it buy three Auckland villages.
The NZX-listed company said it had received strong support from New Zealand and overseas investors in the private placement undertaken on Thursday to fund the $62m acquisition of the Auckland villages.
‘‘Allocations were made to 15 institutions and a broad range of eligible NZ retail investors,’’ the company said.
The $30m capital raising was placed at a price of 84 cents a share. The shares last traded at 85 cents on the NZX.
The settlement date for the new shares is Tuesday June 30.
The group, which includes All Blacks Richie McCaw and Daniel Carter as investors, is buying Aria Bay, Aria Park and Aria Gardens in Browns Bay, Epsom and Albany respectively.
Arvida chief executive Bill McDonald said the market investors had recognised the strategic value of the Aria acquisition ‘‘and our expansion into the Auckland market’’.
‘‘The Aria villages are well established facilities with a strong aged care focus and are situated in premium locations with strong occupancy. They also provide further meaningful brownfield development opportunities.’’
Peter Wilson, chairman of Arvida said the investment represented a strategic acquisition for Arvida, in providing a strong presence in the country’s most populous city. The addition of the three Aria villages brought the group’s total number of facilities to 20, with good geographical spread through the country.
As part of the overall capital raising Arvida has outlined a $5m share purchase plan offering existing shareholders, on the register on July 3, the opportunity to subscribe for up to $15,000 worth of shares, each worth 84 cents.
‘‘The balance of the $62m purchase price comes from the issue of new shares to vendor shareholders in Aria and through existing debt facilities put in place at the time of the IPO [initial public offer of shares] in anticipation of such expansion.’’
The company has a total debt facility of about $40m.
Forsyth Barr was the lead manager to the placement.
The Aria villages are well established facilities with a strong aged care focus and are situated in premium locations with strong occupancy.