Radius Care (NZX: RAD) has completed the previously announced sale of the Arran Court care home, located in Te Atatu, Auckland.

Net sale proceeds of $18.3m have been applied to repay existing ASB borrowings.

Radius Care also announces that the ASB has agreed to amend the expiry date of the remaining $4.7m short term borrowings from 31 January 2024 to 1 November 2026, for consistency with the majority of Radius Care’s term borrowings. As part of the facility extension, ASB has also agreed to remove any requirement to further reduce debt, representing completion of the debt management program agreed with ASB, and referred to in Radius Care’s 2023 Annual Report.

Brien Cree, Executive Chair, said “The sale of Arran Court has materially reduced debt levels. A strengthened balance sheet and the strong operating performance seen in our year to date results ensures Radius Care is in a strong position to accelerate our growth strategy.”

Following the successful completion of the Arran Court sale, extension of ASB debt maturity dates and strong trading performance in FY24 to date, no further asset sales are required.