The country's third biggest retirement village operator Summerset Group is being readied for a sharemarket float, sources say, with an initial public offer likely around September or October.
BusinessDay understands 98 per cent owner Quadrant Private Equity is considering a partial sell-down, two years after buying into the business.
The offer is expected to value Summerset in the ''hundreds of millions'' of dollars.
The offer would be the second retirement village operator to hit the market this year as Vision Senior Living is said to be considering an $80m IPO in August or September.
Quadrant managing director Chris Hadley declined to comment on a potential share offer, but said the firm was a long-term investor and didn't have a predetermined exit strategy.
Summerset, owner of 12 retirement villages in the North Island with more under development, has been touted as an IPO candidate before.
The business was acquired by AMP Capital Investors after its $123m takeover offer in December 2005 bought out founder John O'Sullivan and big shareholder Craig Thompson.
AMP then planned an IPO in mid-2007, reportedly aiming to raise up to $304m, but shelved its plans when it became apparent the market wouldn't match its price expectations.
AMP eventually achieved its exit by selling to Quadrant, with 49 per cent of the business transferring in April 2009 and another 49 per cent a year later. The remaining 2 per cent is held by management.
Quadrant's purchase price remains confidential.
According to its website, the Quadrant Private Equity No 2 fund values its investment in Summerset at A$90.5m. Hadley said that figure was ''only the fund's equity. We manage various pots of money and that's only one. That's not the total investment.''
One market source said Quadrant was expected to offer about $100m of its Summerset stake in an IPO, plus a further $50m of new equity.
It is understood Summerset is being advised by Deutsche Bank, Craig & Co and First NZ Capital.
At balance date on December 31 Summerset had net equity of $174.4m. Its property assets, net of the money residents deposited for them, amount to about $263m.
On those numbers, Summerset is significantly smaller than market leader Ryman Healthcare and Metlifecare, both NZX listed.
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