Radius Care (NZX: RAD) is pleased to confirm the extension of the $23 million bridge facilities with ASB to 31 January 2024.
Sale proceeds from the previously announced sale of the Arran Court facility will be applied to repay the majority of these facilities, representing significant progress in meeting the goals of the company’s debt management program.

For further information, please contact:
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz

Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz

Radius Care (NZX: RAD) has signed an agreement to sell the Arran Court facility, located in Te Atatu, Auckland.

The sale is for 100% of the business, including the freehold property. The sale proceeds are approximately $19.0m (net of sale costs), with settlement planned on 16 January 2024.

The sale is conditional on ASB approval. The pending transaction is also conditional on the purchaser completing satisfactory due diligence and obtaining finance and regulatory approvals. All conditions are due to be satisfied by 30 November 2023.

Brien Cree, Executive Chair, said “Our people at Arran Court have been an important part of the Radius Care community since 2007. We will work closely with the purchaser to ensure a smooth transition and continuity of the care standards our residents and their families expect”.

The sale proceeds will be applied to repay existing debt, representing significant progress in meeting the goals of the debt management program (as outlined in Radius Care’s 2023 Annual Report).

For further information, please contact:
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz

Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz

UCG Acquisition

Radius Residential Care Limited (NZX: RAD) (Radius Care) today announced that it has entered into conditional agreements to acquire the land and buildings of four aged care facilities, currently operated by Radius Care with 342 care beds, from its landlord UCG Investments Limited (UCG) (UCG Acquisition).

The properties which form part of the UCG Acquisition are:

a. Radius Arran Court located in Te Atatu South, West Auckland: 102 care beds;
b. Radius Fulton located in Caversham, Dunedin: 93 care beds;
c. Radius Peppertree located in Kelvin Grove, Palmerston North: 62 care beds; and
d. Radius St Joans located in Fairfield, Hamilton: 85 care beds.

The total purchase price of the properties is $46.7 million, based on independent valuations. The UCG Acquisition will be funded by the following facilities to be provided by ASB Bank Limited:

 

In line with the company’s previously communicated and executed strategy, Radius Care intends to raise capital to repay the $23 million funding provided under the existing development and new bridging facilities.

 

Radius Kensington

In addition to the four UCG Acquisition properties, Radius Care leases the land and buildings of a fifth aged care facility operated by Radius Care – Radius Kensington in Maeroa, Hamilton (96 care beds). Concurrent with the UCG Acquisition, Radius Care has entered into a conditional agreement with UCG to acquire the land and buildings at Radius Kensington (Kensington Acquisition). Radius Care has entered into a separate agreement with a third party for Radius Care to nominate the third party to acquire Radius Kensington in place of Radius Care (Nomination). Under the terms of the Nomination, Radius Care is granted an option to acquire Radius Kensington from 24 May 2022 at a purchase price determined based on an agreed yield, calculated on the then-current rent.

 

Alignment with Radius Care’s Growth Strategy

The transactions represent a continuation of Radius Care’s growth strategy of purchasing facilities already operated by Radius Care. It will increase Radius Care’s freehold ownership to 12 out of 23 aged care facilities it operates. Ownership of the four properties will remove the annual lease expense (and future CPI increases) paid by Radius Care. The UCG Acquisition will also increase the company’s development pipeline by 80 to 100 beds. The acquisition also enables further business optimisation by increasing Radius Care’s future revenue that can be generated by premium-charging and will facilitate the provision of Occupation Right Agreements over care beds (care suites).

 

Shareholder Approval and Timing

The transactions are conditional on Radius Care shareholder approval. Information will be sent to shareholders in April to enable them to vote on the transactions at a shareholders’ meeting in late April 2022. The transactions are expected to settle on 29 April 2022.

 

For further information, please contact:
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz