New York-based Stonepeak, a leading alternative investment firm, announced on Monday it had agreed to buy all outstanding common shares of Arvida Group for US$1.03 (NZ$1.70) per share in an all-cash transaction valued at approximately US$1.25 billion (NZ$2 billion) including the assumption of debt.
The purchase price represents a premium of 65% to Arvida’s closing share price on the New Zealand NZX Main Board stock exchange on 19 July, 2024, the last trading day prior to the announcement of the transaction.
Arvida offers a range of living options to meet the needs of aged individuals including independent living and hospital-level care. Demand for high-quality retirement living in New Zealand has demonstrated strong resiliency through cycles and attractive growth in recent years.
Arvida is the fourth largest operator of retirement villages in New Zealand with 35 villages. It has the ability to develop upwards of 2,100 additional residences.
“As a private entity under Stonepeak’s ownership, Arvida would be able to further strengthen the execution of the Company’s multi-faceted strategy: to sustain and enhance Arvida’s core business; to develop quality communities; to acquire complementary properties; and to deliver quality services to aging communities,” said Anthony Beverley, Arvida Board Chair.
"Stonepeak intends to bring significant capital and operational expertise to support Arvida’s senior management team and business plan.”
The transaction has been unanimously recommended by the Arvida Board of Directors and is expected to close in the fourth quarter of 2024 or the first quarter of 2025, subject to approval by Arvida stockholders, and following satisfaction of customary conditions precedent and regulatory approvals.
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