Metlifecare expands Botany project with additional land purchase

Thursday 25th October 2018

Metlifecare has acquired additional land from Pakuranga Golf Club and will expand its adjacent Botany development by 74 units.

The retirement village operator bought almost 2.4 hectares from the club last year to develop a village with 144 units and 24 care beds.

It has now increased that to 3.4 hectares through the purchase of two additional parcels and the sale of some of the original land back to the club. Consolidating the land will enable the construction of 206 units and increase the size of a planned homestead-style care facility to 36 beds.

Metlifecare didn’t immediately disclose what it paid for the extra land.

The stock fell 2.6 percent to $5.70 in a generally weak market and is headed for its lowest close since April.

Metlifecare shares have fallen from a high of $6.51 in September. Last week the company said it may consider a share buy-back, given the stock's steep discount to net asset backing.

The Auckland-based company is expanding rapidly to cater for the country’s ageing population.

Last week chief executive Glen Sowry said it is active on 11 existing and new villages and will deliver 145 units and two new care homes before the end of June. The following year, Metlifecare anticipates a build rate of at least 300 units, he said. It delivered 254 in the 2018 financial year.

Today Sowry said the purchase of the new land for Botany is due for settlement by June and the development should commence in the second half of 2019.

(BusinessDesk)

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