OCA - Oceania Group - retirement villages

[mfd]

Circa $40m is only $4.5m each. I doubt you could replace the land and buildings component for that. So the "in business" worth is very little.

I have been wondering who are the acquirers - not just from OCA but the other listed entities who have been similarly divesting. It would be interesting to know, to better understand this part of the sector, as any reporting ( unlike the Strathellen sale in Timaru) of that aspect is rare.

Come to think of it Arran Court (ex RAD, where I am an ex-holder) is not too far away from where I live. I will drop by and enquire.

Without knowing the properties it's difficult to comment on replacement cost. But when there is discussion over whether OCAs book values are reasonable or not, the fact that recent transactions took place 'in line' with book values looks extremely relevant to me.

[percy]

Without knowing the properties it's difficult to comment on replacement cost. But when there is discussion over whether OCAs book values are reasonable or not, the fact that recent transactions took place 'in line' with book values looks extremely relevant to me.

I agree recent sales confirm book values.

[winner69]

Without knowing the properties it's difficult to comment on replacement cost. But when there is discussion over whether OCAs book values are reasonable or not, the fact that recent transactions took place 'in line' with book values looks extremely relevant to me.

Probably been ‘writing down’ the book value of these properties over the last few years …..been quite a lot of impairment $s and who knows the detail of the ‘independent’ valuation of each property

I’d say these 9 properties ‘valued’ as to what they hopefully thought they would get for them

[thegreatestben]

If anyone knows of the land parcel addresses that have been divested and the sale has settled I can have a look - feel free to pm.

[Daytr]

Without knowing the properties it's difficult to comment on replacement cost. But when there is discussion over whether OCAs book values are reasonable or not, the fact that recent transactions took place 'in line' with book values looks extremely relevant to me.

I agree recent sales confirm book values.

How many blocks of villas did they sell off? How many care suite buildings did they divest of in those recent sales? Undeveloped land is not a significant part of the NTA and yes I would hope this is correctly valued in the books.

It's the asset valuation of the operating villas & care suites that I am questioning.

[mfd]

Probably been ‘writing down’ the book value of these properties over the last few years …..been quite a lot of impairment $s and who knows the detail of the ‘independent’ valuation of each property

I’d say these 9 properties ‘valued’ as to what they hopefully thought they would get for them

Convince the valuers to price down the 'listed for sale' properties while still overvaluing the rest? Pretty sneaky, if true. The difference would have to be enormous to justify the current share price.

[mfd]

How many blocks of villas did they sell off? How many care suite buildings did they divest of in those recent sales? Undeveloped land is not a significant part of the NTA and yes I would hope this is correctly valued in the books.

It's the asset valuation of the operating villas & care suites that I am questioning.

That's fair, looks like several of the sales were blocks of land or partially completed sites. There was this from the half year report:

"Oceania has divested, closed and exited leasehold interests at six care centres and villages. The sale of two Auckland sites was completed on 29 August 2023 at an amount above independent valuation."

[forest]

If anyone knows of the land parcel addresses that have been divested and the sale has settled I can have a look - feel free to pm.

Amberwood, 499 Don Buck Rd Massey, West Auckland.
On site approximately 30 Rest Home units of the older style, and approximately 30 high need type or hospital rooms (single) build later maybe early 2000.

Amberwood has a road sign which used to note it was part of the OCA group, this part of the OCA group has been painted over so I assume it is not longer owned by OCA.

[allfromacell]

Amberwood, 499 Don Buck Rd Massey, West Auckland.
On site approximately 30 Rest Home units of the older style, and approximately 30 high need type or hospital rooms (single) build later maybe early 2000.

Amberwood has a road sign which used to note it was part of the OCA group, this part of the OCA group has been painted over so I assume it is not longer owned by OCA.

Looks to be now owned by 'Legacy Healthcare' (https://www.legacyhealthcare.co.nz/amberwood/).

Shareholders are David John GRAINGER and Rosa GRAINGER who also own Sunrise Healthcare Ltd. You can read a text based interview from 2019 with them here: https://businessviewoceania.com/sunr...ust-like-home/

[thegreatestben]

Yes sorry slow reply - the actual owning entity is Star Light Property Limited


Last Official Sale Price: $9,514,423
Last Official Sale Date: 09-May-2023

It settled on 29-Aug-2023, that's 79 working days.