Oceania Healthcare has agreed to buy a vacant lot in Auckland's St Heliers valued at $15.6 million for an undisclosed sum, which it plans to develop into a new retirement village.
The Auckland-based company entered into an unconditional deal to buy the 8945 square metre site, which is expected to settle at the end of the week, it said on Monday.
Oceania plans to develop an integrated retirement village and aged care facility on the site, which overlooks Auckland's harbour, and will start work on getting the appropriate consents immediately.
"This is Oceania Healthcare's first greenfield acquisition and adds to its substantial brownfield development pipeline, which will maintain development activity for seven-to-eight years into the future," chief executive Earl Gasparich said.
The land was put up for sale by liquidators KPMG in an international tender.
The property had been tied up for almost four years by litigation between developer Greg Oliver and his former partner Sarah Sparks, real estate agency Bayleys said in October.
At the time, the realtor said the land had a council valuation of $15.6m and was zoned for residential-mixed housing, allowing for the building of one- and two-storey standalone homes.
Oceania raised $200m earlier this year in an initial public offering, of which $173.4m went to repay debt, which it said would give it headroom to fund development projects. Another $16.1m went to acquire the title of a care facility the company was leasing and $10.5m covered the offer costs.
As at May 31, Oceania held $10.9m of cash and equivalents, generating operating cash flow of $38.9m and spending $81.1m on investment activities. Net debt was $84.4m.
The shares last traded at 96 cents, having gained from 79 cents in the May IPO.