Acquisition of Aldwins Road Properties

Market Announcement
Monday 27 March 2023
16251566_2
ACQUISITION OF ALDWINS ROAD PROPERTIES
Aged care and retirement living provider, Promisia Healthcare Limited (NZX:PHL), advises that, in line
with its growth strategy, it has entered agreements to acquire the following properties:
• 60 Aldwins Road, Christchurch;
• 74 & 76 Aldwins Road, Christchurch.

These two properties adjoin the Aldwins House property, which is owned by Promisia, and settlement
is occurring today. Except for the debt arrangements outlined below, these acquisitions have been
funded by cash in hand.

The acquisitions secure an opportunity for Promisia to expand the Aldwins House facility in the future
to offer a broader continuum of care for residents, through the development of assisted and
independent living options. The Board has not set a timetable to undertake these developments.

Since being acquired by Promisia last year, Aldwins House has grown occupancy to approximately 100
residents, moved into a cashflow positive position and will make a positive contribution to Promisia’s
EBITDA for the current FY23 financial year.

Promisia’s Chair, Helen Down, commented: “Today’s acquisitions are in line with our strategy to grow
our network and are perfectly located to allow us to expand the capacity and continuum of care at
our Aldwins House facility in Christchurch. Any acquisition must meet strict investment criteria and be
value accretive for our shareholders. These small but important land acquisitions border our existing
properties and provide immediate and future development potential, which is of considerable
strategic value for our company”.

60 Aldwins Road

Promisia’s subsidiary company, Aged Care Holdings Limited (ACHL), has entered into an agreement to
acquire 100% of the shares in Aldwins Retirement Village Limited (ARVL). ARVL owns the property
situated at 60 Aldwins Road, Christchurch which adjoins the southern boundary of Aldwins House.

This property has a land area of approximately 896m
2
and currently has a residential dwelling on it.
The shares of ARVL are being purchased from the Brankin Family Interest Trust, a family trust
associated with PHL director, Tom Brankin. The purchase price under the agreement is $900,000, less
an assumed first mortgage liability on the property of approximately $375,000.

The purchase price has been set at a level which reflects the current fair market value of the property
and the costs expended by ARVL in acquiring the property and obtaining resource consent for the
property to be redeveloped into a 31-care suite development.

74 & 76 Aldwins Road

In a separate transaction, Promisia has also today settled an agreement with an unrelated party to
acquire the property at 74 & 76 Aldwins Road, which adjoins Aldwins House on its northern boundary.

This property has a land area of approximately 1687m
2
and is currently bare land. As with 60 Aldwins
Road, this property has the potential for an assisted independent living development to leverage the
existing facilities of Aldwins House.

The property has been purchased for approximately $1.21 million with $170,000 paid on settlement
today and with the balance payable over the next seven months on an interest free basis.

ENDS
Approved for release by Acting Chair, Helen Down, 021 776 212
About Promisia Healthcare
Promisia operates four aged care facilities, specialising in high needs and specialised aged care (being
rest home, hospital, and dementia care). It also offers independent living in retirement villas and
apartments. Promisia’s facilities are located in established and well serviced towns with strong
communities close to main centres. The company has a diversified growth strategy that includes
growing its portfolio, developing existing facilities and extending its revenue mix.
Promisia is listed on the NZX (NZX: PHL). www.promisia.com