Radius Care has completed the sale of the Arran Court care home in Te Atatu, Auckland. The net sale proceeds of $18.3 million have been utilised to settle existing ASB borrowings.
In addition to the sale completion, Radius Care reports that ASB has agreed to amend the expiry date of the remaining $4.7 million short-term borrowings from 31 January 2024 to 1 November 2026. This adjustment aligns with the majority of Radius Care's term borrowings.
As part of this extension, ASB has eliminated the requirement for further debt reduction, representing the completion of the debt management programme outlined in Radius Care's 2023 Annual Report.
"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," said Executive Chair, Brien Cree.
With the successful conclusion of the Arran Court sale, the extension of ASB debt maturity dates, and the strong trading performance in FY24 to date, there is no necessity for additional asset sales.
