Global private equity business EQT’s former ASX-listed New Zealand retirement village operator Metlifecare has raised $NZ1.25 billion ($1.19 billion) in a deal with Westpac and ANZ Banking Group, which includes refinancing $NZ600 million of existing debt and securing $NZ650 million of new debt.
The loan is the largest of its kind in New Zealand, overtaking a $NZ700 million offer by rival aged care operator Summerset Group, and makes Metlifecare, which owns and operates 26 retirement villages, the first aged care business in the region fully funded by sustainable debt.
Metlifecare’s loan means it will pay lower interest rates if it meets KPIs, which include the decarbonisation targets, six new facilities with six-green-star ratings and increasing dementia care beds sixfold within five years. If it misses the KPIs, it will pay higher interest.
Metlifecare has signed a Sale and Purchase Agreement to acquire six retirement villages from the New Zealand charity The Selwyn Foundation. The transaction is contingent on approval from the Overseas Investment Office, Ministry of Health and Statutory Supervisor.
“The acquisition significantly increases the weighting of aged care in the Metlifecare portfolio, with the provision of a full continuum of care on each of the six sites. It provides good geographical diversification, with the first Metlifecare sites in Wellington city, Cambridge and Whangarei, and it also provides significant further development potential,” said Metlifecare CEO Earl Gasparich (pictured).