NEW ZEALAND | Promisia Healthcare completed its $25 million acquisition of Chatswood Retirement Village in Opawa, Christchurch, on 1 October, adding 100 care beds and accommodation units to its portfolio. The purchase gives the company a second substantial operation in East Christchurch alongside Aldwins House.
First announced in August, the transaction supports Promisia’s strategy of building regional clusters. The company identified opportunities for greater operating efficiency, stronger local recognition, and a wider choice of care and accommodation through the two Christchurch facilities.
Chatswood comprises 29 care beds, 42 care suites, and 29 serviced apartments, providing rest home, hospital-level, and assisted-living care. Together with Aldwins House, it broadens Promisia’s local offering across residential care and retirement living.
The financial expectations outlined in August were based on Chatswood’s occupancy and operations at that time. Promisia estimated annualised underlying EBITDAF of approximately $2.3 million to $2.8 million, including deferred management fee income, and expected the acquisition to contribute immediately to underlying earnings and operating free cash flow.
Those figures remain acquisition forecasts. The completion announcement confirmed settlement and the issue of shares and convertible notes, but did not provide an updated earnings estimate or quantify the operating savings expected from bringing the facilities into the same group.
Shareholders approved the transaction on 27 August. The agreed purchase price comprised $24 million in cash, funded through cash on hand and approved bank finance, with the balance split between shares and a convertible note. At completion, Promisia issued one million ordinary shares and one million unquoted convertible notes to the vendors.
The purchase was a related-party transaction because interests associated with Promisia chair Rhonda Sherriff owned 50 percent of Chatswood. Sherriff did not participate in the company’s consideration, negotiation, or approval of the acquisition.
Chatswood also includes approximately 2,600 square metres of development land, which Promisia identified as offering medium-term expansion potential. Settlement brings the existing operation into the group; any further development would be a separate step in building its Christchurch presence.
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