Goldman exits NZ retirement villages to Metlifecare
Goldman Sachs has exited its majority stake in New Zealand retirement village operator Vision Senior Living to Metlifecare. The acquisition – which includes Private Life Care Holdings as well as Vision – will be financed through Metlifecare issuing new shares worth NZ$113 million ($90 million). A further NZ$10 million will be raised through issuing additional shares to existing Vision shareholders.
Vision is 68% owned by two funds controlled by Goldman, with the remainder held by private shareholders in Arrow International Group. Hauraki Private Equity No.2 Fund, a NZ$75 million vehicle set up by Australia's JBWere and Goldman, paid NZ$20 million for a 28.5% stake in Vision in 2006. One year later, Goldman secured its current controlling interest for an extra NZ$54 million, via the A$415 million GSJBWere Trans-Tasman Private Equity Fund 07.
The team responsible for the initial investment in Vision spun out to form Maui Capital in 2008 and the Hauraki vehicle they set up is now in its disinvestment phase.
Private Life Care Holdings is wholly-owned by a subsidiary of Retirement Villages Group (RVG), Metlifecare's major shareholder. RVG plans to sell down its enlarged shareholding to retail investors, taking its stake in the company below 50%, although it will retain no less than 35% for at least 12 months.
Metlifecare is New Zealand's third-largest retirement village operator after Ryman Healthcare and Summerset Group, which was taken public last year by Quadrant Private Equity. The PE firm still owns 56% of Summerset.
The acquisition will take Metlifecare's portfolio from 16 villages to 24, including three villages at development stage. The number of units will grow from 2,460 to 3,902. Total assets will be in excess of NZ$2 billion with total equity of approximately NZ$789 million.
"Vision has a strong development pipeline and an experienced development team, with growing cash flows from its existing five villages. PLC consists of three mature villages, with good, reliable cash flows," Alan Edwards, managing director of Metlifecare, said in a statement. "The merger will be immediately cash flow accretive and will provide an enhanced platform for Metlifecare to drive growth and shareholder value."
Metlifecare was advised by Grant Samuel & Associates.
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