Promisia Healthcare is putting $25 million behind its strategy of building local scale, with a conditional agreement to acquire Chatswood Retirement Village in Opawa, Christchurch.
If completed, the deal would add 100 beds and units and give Promisia a second substantial care operation in East Christchurch alongside Aldwins House. Promisia said the two facilities would create a broader local offering across rest home and hospital-level care, care suites, serviced apartments and retirement living.
The transaction is not yet complete and there is a related-party element. Interests associated with Promisia chair Rhonda Sherriff currently own 50 percent of Chatswood. Sherriff did not participate in Promisia’s consideration, negotiation or approval of the acquisition, which was approved by the remainder of the board.
Chatswood has 29 care beds, 42 care suites and 29 serviced apartments. It recently received four-year certification from the Ministry of Health, the highest certification period available under New Zealand’s aged care certification framework.
For Promisia, the numbers behind the acquisition are as important as the additional capacity. Based on current occupancy and operations, the company estimated Chatswood would contribute annualised underlying EBITDAF of approximately $2.3 million to $2.8 million, including deferred management fee income.
Promisia also expected the acquisition to add immediately to underlying earnings and operating free cash flow.
The company has been building its portfolio around regional clusters. With Chatswood sitting alongside Aldwins House, Promisia identified opportunities for greater operating efficiency, stronger local recognition and a wider choice of care and accommodation within the same part of Christchurch.
Whether all of those efficiencies are realised will depend on how the two operations are brought together. The immediate attraction is the additional scale, but Chatswood also comes with approximately 2,600 square metres of development land, providing room for further expansion.
Chief Financial Officer Francisco Rodriguez Ferrere said Chatswood complemented Aldwins House and would give Promisia a materially stronger position in East Christchurch.
The $25 million purchase price comprises $24 million in cash, funded through cash on hand and approved bank finance. A further $500,000 would be paid through Promisia shares issued to Sherriff at 50 cents per share, with another $500,000 issued to the other vendor as a convertible note.
Completion is scheduled for 1 October 2026, but remains subject to shareholder and NZX approvals, regulatory and statutory supervisor approvals and a Certificate of Code Compliance for recently completed building work at Chatswood.
Promisia planned to seek shareholder approval at its annual shareholders’ meeting later in August. For an operator pursuing growth, Chatswood offers immediate capacity and another development site. The next measure will be whether putting two large facilities into one East Christchurch cluster delivers the operating gains Promisia has identified.
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