Australian private equity Adamantem buys into NZ aged-care operator Heritage Lifecare

Thursday 6th April 2017

Australian private equity firm Adamantem Capital has bought into Heritage Lifecare in a deal valuing the New Zealand retirement village and aged-care operator at $115 million.

Wellington-based Heritage Lifecare operates 977 care beds and 312 living units across 19 sites with above average occupancy rates, it said in a statement. The New Zealand firm will use funds from the Australian firm to buy 10 of those sites as part of an acquisition pipeline Adamantem sees as open for further expansion.

The companies didn't disclose how much cash Adamantem is investing in Heritage Lifecare or how big a stake it will take in the New Zealand firm, although the Australian company's managing directors Anthony Kerwick and Angus Stuart will join Heritage Lifecare's board.

"We were attracted to the company’s premium portfolio of properties and the team’s strong operational focus on resident care," Kerwick said. "Within a highly fragmented industry, Heritage Lifecare has substantial opportunities to further expand its portfolio and we look forward to supporting the team during this important next phase of the company’s growth."

An ageing population is seen as offering growth opportunities for companies in the aged care sector while at the same time rising property values have underpinned growth for retirement village operators selling and reselling occupation rights to their units. That's seen listed retirement village operators ramp up their development activity and branch out into complementary health services.

Lifecare Heritage chairman David Renwick said the investment from Adamantem will leave the company well placed to pursue growth to meet that demand.

(BusinessDesk)

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