$345m Acquisition In Retirement Village Sector

Chapman Tripp is pleased to have advised Arvida Group Limited on the purchase of six retirement villages in a game-changing acquisition, completed under lockdown conditions, which will increase Arvida’s portfolio in the sector by 24% and provide it with a further growth platform.

Chapman Tripp advised Arvida on all aspects of the acquisition of Arena Living (and its six villages) from leading global investment fund, Blackstone. The Chapman Tripp team comprised partner Nick Letham, senior associate Matthew Tolan and solicitor Stephanie Knowler, all from the firm’s Christchurch office, and Auckland-based partner Roger Wallis.

The firm also assisted Arvida with its $330m equity raise via a $155m underwritten placement and a $175m underwritten rights offer, to fund the acquisition. Wallis, along with senior solicitor Liam Stoneley and solicitor Laura Murton advised on the capital raising elements of the deal.

Chapman Tripp’s finance team, led by Partner Cathryn Barber, senior associate Hayden Reyngoud, and solicitor Caitlin McLintock, also advised Arvida on a $100m extension to its bank facilities in conjunction with the deal.

Arvida CEO Jeremy Nicoll said the purchase from Arena Living had provided a rare chance to acquire quality assets in highly desirable central Auckland and Tauranga locations, with significant scope for further growth.

“In aggregate, Arvida has identified the opportunity to add over 100 care suites and over 150 units through a combination of retrofitting and site development”, he said.

“We had agreed the price before Auckland was locked down but had to complete the transaction remotely, which created some challenges but the remote formats – in particular Zoom and Microsoft Teams – proved equal to the task”.

Nick Letham, lead partner for the acquisition said:

“This was a challenging, but thoroughly rewarding deal to be involved with – with half of our team, as well as the Arvida team and other Auckland-based advisers, all working from home to complete the acquisition and capital raise. We really enjoy working with Jeremy and his Arvida team, and congratulate them on another successful acquisition.”

Bell Gully acted for Blackstone and Russell McVeagh acted for the joint lead managers and underwriters of the capital raise, Jarden and Forsyth Barr.

Chapman Tripp also had the lead role on advising Arvida in its inaugural issue of NZX-listed retail bonds in February 2021.

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