Summerset is a New Zealand based retirement village and aged care services business based in Wellington. At time of exit, Summerset had a network of 16 operating villages with a further 5 land banks for future greenfield developments across the country (primarily on the North Island).
Quadrant was attracted to Summerset due to the attractive industry dynamics, brownfield and greenfield development sites, capable management team, and the ability for us to accelerate growth with further capital injection to acquire new land banks and fast track brownfield developments.
During Quadrant’s 4 year investment in Summerset, achievements included:
- Increase in operating villages from 11 to 16 (plus 5 land banks);
- Increase in retirement living units from 1,109 at entry to 1,748 at 30 June 2013;
- EBIT up from $6.9m (Dec 2009) to $19.3m (Dec 2012);
- Increase in total assets from $500.5m (Dec 2009) to $764.2m (at June 2013);
- Summerset won Retirement Village of the Year award for 3 straight years;
- Significant expansion of the management team, costs invested into the business, expansion of FTE’s by over 50%; and
- Significant expansion / upgrade to existing villages alongside new village development.
“Summerset was partially exited via a successful IPO in November 2011 with a 30% sell-down by Quadrant at that time. This was the first private equity IPO in NZ since Quadrant took Kathmandu to IPO in November 2009. Summerset priced at $1.40 per share and has since traded up to over $4.50 per share since IPO. Quadrant remained on the Board until we sold down our remaining shares in October 2013."