Quadrant backs NZ retirement village operator

The Sydney-based firm has acquired a 49.9% stake in Summerset. The company, owned by AMP Capital Investors, had ‘purposefully withdrawn’ an IPO bid in 2007 due to weak market conditions.

Quadrant Private Equity has formed a joint venture with the private equity arm of New Zealand-based AMP Capital Investors to acquire a 49.9 percent stake in Summerset, a retirement village operator.

Financial details of the deal, which is subject to the approval of New Zealand’s Overseas Investment Office, were undisclosed.

Summerset: 49.9% owned by Quadrant

Chris Hadley and Marcus Darville, respectively a managing director and a director at Quadrant, have joined Summerset’s board, according to a Summerset spokesman. 

Founded in 1994, Summerset offers village lifestyle options and care facilities and is the third largest retirement village owner and operator in New Zealand by market share. The company has 13 retirement villages across the country and intends to own 20 villages by 2011.

In November 2005, AMP Capital Investors acquired Summerset for NZ$125 million. The firm considered listing the company in August 2007 but decided not to due to the economic environment at the time, a spokeswoman said.

Quadrant’s previous investments include fast food company Australian Fast Foods, which operates the Red Rooster and Chicken Treats outlets in Australia.

In May 2007, Quadrant closed its second fund on A$500 million ($350 million; €271 million). The fund focuses on management buyouts and expansion capital in Australia and New Zealand, investing between $40 million and $100 million per deal.

AMP Capital Investors is a New Zealand-based subsidiary of financial services firm AMP. It manages approximately $11 billion in funds within New Zealand.

Quadrant did not reply to requests for comment.