Radius Care Acquires Land And Buildings At Four Key Sites Across New Zealand

AUCKLAND, New Zealand, 8 July 2021 — Aged care and retirement village operator Radius Care (NZX: RAD) has conditionally acquired the land and buildings at four strategic leased sites from one of Radius Care’s largest landlords, Ohaupo Holdings Limited.

The facilities are:

· Taupaki Gardens in Kumeu, Auckland

· Windsor Court in Ohaupo, Waikato

· Heatherlea in New Plymouth

· Elloughton Gardens in Timaru.

The purchase of these facilities increases Radius Care’s brownfield development pipeline and gives Radius Care ownership of the aged care facilities adjacent to two co-located retirement villages that it owns and operates.

The acquisition price is NZ$31.4 million, a 2.3 percent discount to the April 2021 independent valuation. The purchase price for the properties will be settled partly in cash and partly through the issue of new shares in Radius Care to Ohaupo Holdings.

In connection with funding the Ohaupo acquisition, Radius Care has announced an equity raise comprising a $23 million placement, with a provision for Radius Care to accept up to an additional $7 million of oversubscriptions at its discretion, and a $5 million retail offer, with a provision for Radius Care to accept up to an additional $5 million of oversubscriptions at its discretion.

The issue of shares to Ohaupo Holdings, the issue of shares under the placement and the retail share offer are each conditional on shareholder approval, which will be sought at a Special Meeting to be held on Friday 23 July 2021 at 10.30am at Eden Park or via web.lumiagm.com (meeting ID: 308-646-140).

The Ohaupo acquisition is, in turn, conditional on that shareholder approval being obtained. Further details regarding the transactions announced today can be found on Radius Care’s website at www.radiuscare.co.nz/investors-centre.

Supporting quotes

Brien Cree, Chairman and Founder of Radius Care says, “We listed on the NZX in December 2020 and this purchase begins to realise the vision for the company. We’re delighted to be acquiring assets that we already operate, fully bringing them into Radius Care control. The purchase also takes the first steps towards expanding our retirement offerings and improving our property portfolio.”

Stuart Bilbrough, CEO of Radius Care says, “This acquisition brings 277 care beds on to our balance sheet with two of the four sites having brownfield expansion opportunity of a further 40 beds. This acquisition lays the groundwork for Radius Care’s expansion and is key to executing our growth strategy.”

Bilbrough also says, “This purchase gives Radius Care greater control of property and its development, and our ability to grow and further support the community and aging New Zealanders. As people move into the twilight years of their lives, we’ll be able to give them better retirement and aged care options. The little things matter, a garden, a lawn bowling area, more green spaces – they all add to people’s comfort and happiness. And that’s what matters most, the health, happiness and comfort of those in our care.”

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