Webb's puts share parcels on the block

Auctioneer Mark Sumich sells Radius shares. Photo / Natalie Slade

An unknown bidder paid $500,000 for a million shares in Radius Properties when two parcels in the company went under the hammer yesterday.

Auckland-based auction house Webb's sold two 466,982 share parcels at its Newmarket gallery yesterday.

Radius Properties is not a listed company and shares in it are usually sold through a tender process.

The company focuses on buying and leasing property for the health care sector, especially aged care. Webb's managing director Neil Campbell said the auction process gave would-be buyers an opportunity to check the books of a private company.

It made the sale of the shares more transparent as other bidders were aware of the going price.

"When you're in the room you can see who is bidding against you, and the market responds to your bid. That can be quite a confidence builder."

Campbell said that although the practice was rare in New Zealand, it was common overseas.

The bidding opened at 40c, and the parcels were sold at 54c per share.