Radius Care (NZX:RAD) acquires 109-bed St Allisa care home

Radius Residential Care (NZX:RAD) announced it has agreed to acquire the business and assets of the St Allisa care home in Christchurch for NZ$14.7 million. The acquisition, conditional on regulatory approvals, is expected to settle on 30 May 2025. The deal includes a sale and leaseback arrangement for the land and buildings with Warehouse Storage Limited, which will be sold for $13.6 million and leased back to Radius Care with an initial 30-year term and renewal options. The remaining NZ$1.1 million will be funded through working capital. Radius Care CEO Andrew Peskett stated that the acquisition of the 109-bed facility, which includes hospital and dementia care, marks the company's 24th care home and strengthens its presence in Christchurch. The acquisition is projected to be earnings accretive in FY26, with significant earnings upside potential.