The majority shareholder in retirement village operator Summerset Group is selling nearly a fifth of the company.
Australia's Quadrant Private Equity is selling 40 million shares, or 18.6%, leaving it with 37.2% of the firm.
Quadrant took full ownership of Summerset in 2010 after buying AMP Capital Investor's half stake, then sold down its holding when the group listed on the NZX in late 2011.
It says it is committed to supporting the future success of the company and will still have board representation.
Summerset chairman Rob Campbell said says the change in share ownership is another important step in the development of the company, which more than tripled its half year profit in February.
"It does mean that we get a wider range of institutional and retail investor support which is very important for the company going forward."
Shares will be in a trading halt for up to two days to enable the transaction to go through. UBS is handling the deal.