Fisher & Paykel Healthcare sells 13 hectares to Health New Zealand for $45.3 million
Fisher & Paykel Healthcare has entered into an agreement to sell 13 hectares of its Karaka Road, Drury site to Health New Zealand for $45.3 million, with settlement expected between March and June 2027, subject to certain sale and purchase conditions.
The company retains the remaining land of the original 105-hectare site for its planned second New Zealand campus. A rezoning application for that retained land is currently under review by Auckland Council.
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What the Drury land sale means for FPH investors
Transaction structure at a glance
The key deal mechanics are outlined below.
| Detail | Figure |
|---|---|
| Land sold to Health NZ | 13 ha |
| Total site originally purchased | 105 ha |
| Land retained by FPH | Remaining land |
| Sale price | $45.3M |
| Final vendor payment due | $15M (December 2026) |
| Settlement window | March – June 2027 |
Fisher & Paykel Healthcare entered into the original site purchase agreement in September 2022, with two scheduled instalment payments already made to the vendor. A final payment of $15 million remains due in December 2026. The $45.3 million in sale proceeds more than covers that outstanding obligation, reflecting a degree of capital efficiency from the transaction.
Earnings guidance and accounting treatment
The sale will be reported as an abnormal item in Fisher & Paykel Healthcare’s income statement. Full-year earnings guidance issued on 21 August 2026 does not include any impact from the transaction, meaning investors should treat the proceeds as separate from the company’s underlying operating earnings outlook.
The FY27 profit guidance upgrade, issued days before this transaction was announced, lifted the full-year NPAT range to $525-$565 million and explicitly excluded any contribution from the Drury land sale, meaning the $45.3 million proceeds represent pure upside to the underlying operating earnings outlook.
Why co-locating a hospital next to FPH’s R&D campus matters
Fisher & Paykel Healthcare’s planned Drury campus represents a long-term manufacturing and research and development expansion, and the prospect of a major public hospital on an adjacent parcel adds a strategic dimension to the site. For a medical device company, proximity to a large hospital can support clinical collaboration, talent attraction, and an ongoing innovation pipeline — a dynamic that mirrors FPH’s long-standing relationship with Middlemore Hospital, which the announcement traces back to the early involvement of Dr Nigel Rankin.
Key points from the government’s announcement include:
- Health New Zealand intends to use the 13-hectare site to develop future health infrastructure, including the potential development of a major hospital, subject to future planning and investment decisions.
- The New Zealand Government has asked National Infrastructure Funding and Financing (NIFCO) to lead delivery of the project alongside Health New Zealand.
- Health Minister Simeon Brown specifically cited the co-location with FPH’s research and development precinct as an opportunity to foster innovation, attract talent, and encourage private sector investment.
- The site’s adjacency to the future Ngākōroa train station and State Highway 22 was cited as a material consideration in the site selection.
Lewis Gradon, Managing Director and Chief Executive Officer
“Locating a major new hospital alongside a world-class research and development campus creates a strong foundation for innovation in medical technologies. We look forward to working closely with the new facility in the future.”
Campus development and long-term growth outlook
The retained landholding preserves Fisher & Paykel Healthcare’s development footprint for its planned second New Zealand campus, with the rezoning application currently before Auckland Council. Managing Director and Chief Executive Officer Lewis Gradon has pointed to South Auckland as an attractive long-term expansion location for the company.
The site carries practical infrastructure advantages. Its position adjacent to the future Ngākōroa train station and State Highway 22 provides strong public transport and road access for staff, patients, families, and visitors. The land sale effectively monetises a portion of the site that falls outside FPH’s own development plans, while leaving the bulk of the holding intact for future campus use.
Lewis Gradon, Managing Director and Chief Executive Officer
“We continue to see South Auckland as an attractive location for long-term expansion. This investment supports our growth aspirations and infrastructure needs.”
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