Cautiously optimistic about Arvida buyout
Arvida Oakwood’s resident Alec Waugh is hoping the buyout will be positive. Photo: Anne Hardie.
Arvida residents in Richmond are “cautiously optimistic” about a potential NZ$2 billion buyout of the rest home and aged care company by a US private equity investor.
Arvida Oakwoods’ resident’s committee secretary, Alec Waugh, says something needed to happen because so many projects have been put on hold. At Oakwoods, the upgrades of its care centre and village centre have been on hold indefinitely, while down the road at Arvida Waimea Plains, a proposed aged-care facility was put on hold earlier this year.
At the time, Arvida said there would need to be plan changes before it progressed and that would likely mean a smaller facility with less rooms.
Arvida is one of the big six retirement village operators in New Zealand, but tiny compared with the New York-based Stonepeak which is valued at US$71 billion. Alec hopes that may work in favour of the Arvida villages.
“It needed to happen; something needed to happen.
“Arvida is one of the big six retirement village operators, but it’s only been going 10 years and it’s definitely got debt and cashflow issues.
“So, we’re cautiously optimistic it will be good for the residents. At Oakwoods level, what we’re interested in is getting the improvements to our village centre and care centre.
“We’re hopeful this will be helpful and not a delay. These projects need to go ahead and as residents we’ve wanted them for a long time,” Alec says.
“Let’s hope this is a positive for us.”
He says Arvida has promised contemporary care facilities and the planned facility at Waimea Plains is important to both of the retirement villages as residents from each move into full-time care.
Arvida’s board has recommended shareholders accept the $1.70 per share price offered by Stonepeak. The offer is subject to shareholder, High Court and Overseas Investment Office approval.
Analysts have said the retirement village sector’s NZX share prices have been overly discounted compared to their underlying value, which has created opportunities for investors.
High interest rates are being blamed for lower share prices as it is taking people longer to sell houses and move into retirement villages.