ElderCare NZ Strengthens North Island Position

ElderCare New Zealand Strengthens North Island Position
Acquires Remaining Assets of ElderCare Central Limited

Auckland – 6 April 2000 – Leading retirement care provider ElderCare New Zealand Limited (NZSE: ELD) today announced that it has paid $3.45 million in cash to acquire the remaining 49.9% of ElderCare Central Limited. The deal will see ElderCare New Zealand assume sole ownership of ElderCare Central’s stake in four assisted living facilities in the central North Island, two completed and two under construction.

ElderCare New Zealand Chief Executive Officer, Alan Clarke says the acquisition of ElderCare Central will allow the company to streamline operations and improve its financial performance by allowing full recognition of earnings from jointly held facilities. “Acquiring the remainder of ElderCare Central is a logical fulfillment of our intentions when we made the original investment. It will enhance the company’s earnings base as well as operating capabilities and will allow us to take advantage of additional growth opportunities in our target markets.”

ElderCare Central currently has 109 beds and 33 villas in two locations – Molly Ryan in New Plymouth and the flagship St Johns Wood facility in Taupo. In addition to these, ElderCare Central is currently pursuing three development opportunities. Construction has already started on stage two of one hundred villas, forty apartments and an eighty-bed nursing home at Te Mata Estate in Havelock North. Construction is also about to commence on thirty-two apartments and a forty bed nursing home/hospital in Taradale. Sales in both facilities will commence later this year. In addition, twenty further apartments are nearing completion at St Johns Wood.

Project Management Capabilities
ElderCare New Zealand has also acquired 50 percent of the shares in the joint venture company Pacific Projects Limited, a project management company that specialises in the development of assisted living and aged care facilities. It will incorporate the construction, architectural and design capabilities of Kudos Architectural and Horizon Construction.

Clarke says incorporating the skills and intellectual property of Horizon and Kudos into ElderCare will enhance the company’s development capabilities and retain margins typically lost by outsourcing architectural and construction expertise.

Going forward, Horizon and Kudos will provide design and project management support for ElderCare developments throughout New Zealand.

Company Background
ElderCare New Zealand Limited (NZSE: ELD) is a retirement care provider. The company owns a substantial portfolio of nursing homes and assisted living facilities throughout New Zealand at which they offer broad and varied services for the healthcare needs of elderly people.

ENDS

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