Radius Care has successfully completed the sale of its Arran Court care home in Te Atatu, Auckland, for $19 million.
The net sale proceeds of $18.3 million were used to repay existing borrowings from ASB.
In addition to the sale, ASB has agreed to amend the expiry date of the remaining $4.7 million short-term borrowings, extending it from 31 January 2024 to 1 November 2026.
This extension aligns with the majority of Radius Care's term borrowings and eliminates the requirement to further reduce debt.
The company stated that the sale of Arran Court, along with the extension of debt maturity dates and strong trading performance, has eliminated the need for any further asset sales.
Radius Care operates 23 aged care facilities in New Zealand and employs over 1,800 people.
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