Promisia Expands Christchurch Presence with $25 Million Chatswood Acquisition
Promisia Healthcare is set to acquire Chatswood Retirement Village in Christchurch for $25 million, bolstering its East Christchurch presence and promising immediate earnings accretion.
- Chatswood acquisition valued at $25 million
- Immediate accretion to underlying EBITDAF and free cash flow
- Strengthens Promisia’s East Christchurch care cluster
- Completion contingent on shareholder and regulatory approvals
- Includes development land with expansion potential
Strategic Expansion in East Christchurch
Promisia Healthcare (NZX:PHL) is poised to deepen its foothold in Christchurch’s aged care market through a conditional $25 million acquisition of Chatswood Retirement Village in Opawa. This move complements Promisia’s existing Aldwins House facility, creating one of East Christchurch’s largest integrated care clusters.
Chatswood offers a modern, purpose-built facility with 100 beds and units spanning rest home, hospital-level, and assisted living care. Its recent four-year Ministry of Health certification; the highest available; underscores its strong clinical standards and operational quality.
Financial Upside and Operational Synergies
The acquisition is expected to contribute an annualised underlying EBITDAF between $2.3 million and $2.8 million, including deferred management fees, and to be immediately accretive to Promisia’s earnings and operating free cash flow. This aligns with Promisia’s recent momentum, following a 58% EBITDAF growth in FY26 and a record 96% occupancy rate across its portfolio as of July 2026.
By combining Chatswood with Aldwins House, Promisia aims to offer a broader continuum of care options; rest home, hospital, care suites, serviced apartments, and retirement living; within a single geographic cluster. This approach is designed to enhance operating efficiencies, local brand recognition, and resident choice.
Transaction Structure and Governance Considerations
The $25 million purchase price breaks down into $24 million cash on completion, $0.5 million in Promisia shares issued to Rhonda Sherriff, Promisia’s Chair, and a $0.5 million convertible note to the other vendor. The convertible note is convertible into shares at $0.50 per share within 12 months, a price set as a premium to Promisia’s market price in April 2026.
Notably, interests associated with Chair Rhonda Sherriff currently own 50% of Chatswood. She has recused herself from all transaction deliberations, and the Promisia Board approved the deal excluding her participation. Completion is scheduled for 1 October 2026, pending shareholder approval at the upcoming Annual Shareholders’ Meeting and other regulatory consents.
Development Potential Adds Long-Term Value
Chatswood includes approximately 2,600 square metres of development land, offering Promisia attractive medium-term expansion opportunities. This aligns with the company’s strategy to grow sustainably by enhancing its care offerings and property footprint in key regional markets.
Promisia’s CFO Francisco Rodriguez Ferrere emphasised the strategic fit: "Chatswood is a high-quality acquisition and a clear strategic fit for Promisia. It complements Aldwins House, broadens our Christchurch offering and gives us a materially stronger position in East Christchurch." He highlighted the company’s focus on building strong local clusters to improve service delivery and resident options.
Bottom Line?
Promisia’s Chatswood acquisition reinforces its cluster strategy in Christchurch, with immediate earnings benefits and promising development upside, pending key approvals.
Questions in the middle?
- Will shareholder approval be secured smoothly given the Chair’s vendor interest?
- How will Promisia capitalise on Chatswood’s development land in the medium term?
- What operational efficiencies will emerge from integrating Chatswood with Aldwins House?
