Arvida Group Limited (NZX:ARV) confirmed today that following a successful capital raise, settlement has been completed of the purchase of Bethlehem Country Club, Bethlehem Shores and Queenstown Country Club for approximately $180 million.

Strong support was received from existing and new shareholders in the $50 million placement and $92 million rights offer. The vendors were issued $10 million of new shares today on the terms set out in the rights offer document and subject to escrow for 12 months.

“Achieving an 86.5 percent take up rate in the rights issue tells us our investor base is very solid and supportive. This is important as we seek to deliver on growth opportunities,” commented Arvida CEO Bill McDonald. He added “the balance of rights was subscribed at a 17 percent premium to the rights price which also represented a significant endorsement.”

Mr McDonald said, “it was very positive to have added three high quality villages in key retirement growth areas to our portfolio.”

“We have the opportunity to build over 500 new homes including care facilities in Tauranga and Queenstown through the acquisition. Our target annual build rate increases to 250+ from next year as we look to realise the value from this and our existing development pipeline.”

“As part of the transaction, we have also transitioned the Sanderson construction team allowing us to continue development at these villages.”

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