Promisia Healthcare to acquire two Cromwell retirement villages

Promisia Healthcare has announced its conditional agreement to acquire two retirement villages in Cromwell for approximately $33 million.

The deal, which is set to be completed over four years, will expand Promisia's network to six facilities and add 106 care beds, including a specialist dementia unit, as well as 137 independent living villas and apartments.

The acquisition of Golden View Lifestyle Village and Ripponburn Lifestyle Village is expected to be immediately earnings accretive for the company, with their annualised revenue amounting to 45% of Promisia's FY23 revenue.

Cromwell's ageing population and high demand market were cited as key factors for the expansion.

A shareholder meeting to consider the transaction will be held in June 2024 in Wellington.