Radius Residential Care will sell its Te Atatu facility. (File image) Photo: 123RF
Aged care provider Radius Residential Care is selling one of its Auckland facilities for $19 million as it pays down debt.
The company has signed an agreement to sell the Arran Court facility business and property, located in Te Atatū, with settlement planned for mid-January 2024.
Executive chairperson Brien Cree said the sale proceeds would go towards repaying existing debt.
"Our people at Arran Court have been an important part of the Radius Care community since 2007.
"We will work closely with the purchaser to ensure a smooth transition and continuity of the care standards our residents and their families expect."
The sale was conditional on ASB approval and the pending transaction was also conditional on the purchaser completing satisfactory due diligence and obtaining finance and regulatory approvals, Cree said.
All conditions were due to be satisfied by the end of November.
Earlier this year, the company reported record underlying profit growth of 32 percent, despite a difficult trading period.
The company was also in the process of reviewing its portfolio position, as part of a requirement to raise equity of not less of $30m by 31 July, as part of a review of its debt position.
The company had $23m bridge facilities financing, which was put in place on 6 May 2022 and would have to be repaid by 6 October.
