New Zealand’s Direct Capital invests retirement village operator

The private equity firm invested via its fifth buyout and growth fund, which closed in 2017 at NZ$375 million ($256 million) and targets companies looking to expand into overseas markets. The firm typically invests NZ$15-60 million per deal.  

Qestra operates two properties under the names Alpine View Lifestyle Village and Burlington Village, and has two additional villages in the development stage. The projects are positioned as premium “design-led resort-style” accommodations featuring standalone houses, serviced apartments, and a comprehensive range of care services.

The company is chaired by John Ryder, who was one of the founders of Ryman Healthcare, a breakthrough player in the local aged care industry. Direct Capital invested NZ$23 million in Ryman in 1996. It went public in 1999 and is now worth about NZ$5.4 billion. Ryder has been an independent chairman of Direct Capital since 2008.

“Qestral offers its residents a market leading level of service and amenity, and its modern, architecturally designed lifestyle villages on large individual sites are its point of difference” Gavin Lonergan, a director at Direct Capital, said in a statement. “Village style and design changes over time and we believe Qestral is really well placed with new villages to provide the lifestyle that a new generation of residents are looking for.”

Qestral is based in the southern city of Christchurch and its two operating assets are in the immediate area. Its two expansion projects are planned for locations across the country’s North and South Islands. Investment in the rural south is an emerging trend for New Zealand private equity, driven by increasing openness to the asset class among small business owners in the region and upside related to growing interest from indigenous Maori investment groups. 

Direct Capital is New Zealand’s largest private equity firm and considered one of the founders of the local industry. It claims to have raised NZ$1.2 billion and invested some 75 private companies since 1994. Fund V has made at least four previous investments. These include clothing manufacturer AS Colour, financial services company Perpetual Guardian, frozen food maker Marvel Packers, and diagnostic imaging business Exact Radiology.

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• Topics
• Australasia
• Healthcare
• Expansion
• New Zealand
• Direct Capital
• Real estate