New Zealand Superannuation Fund and Infratil Buy Into Senior Housing

Some economists tend to say, “Demographics are a predictor of the future.” The New Zealand Superannuation Fund (NZSF) and Infratil, a New Zealand-based infrastructure investment company, are conditionally buying stakes in Metlifecare. Metlifecare is a publicly listed retirement village and aged care provider aka “senior housing.”

With the greying demographic profile of New Zealand, institutional investors want to provide capital and ride the demographic trend of retirement living. The New Zealand Superannuation Fund is allocating $126 million for a 17% stake, while Infratil is looking at a 19.9% stake. Pricing is based on a NZ$ 3.53 share price. Details of the conditionality include a fixed price sub-underwriting agreement and will. The NZSF could actually own up to a 19.9% stake when the deal closes, since they currently own 2.89% of Metcarelife.

Both the Infratil and NZSF deal are expected to finalize on November 28, 2013.

Stock investors reacted positively to the news, pushing up share prices of Metlifecare.

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