Summerset secures land for new villages in Rangiora, Blenheim

Monday 25th March 2019

Summerset Group expects to spend more than $250 million building new villages in Blenheim and Rangiora where it's secured land for development.

The retirement village operator and developer bought nine hectares in Rangiora, where it plans to build more than 300 units. It also bought six hectares in Blenheim for a 200-plus unit village. Both sites will include two- and three-bedroom villas, serviced apartments, rest homes, hospital-level care, and dementia care centres.

"We’re delighted to bring our brand of popular retirement living to both towns. Rangiora and Blenheim are both highly rated as places to retire in New Zealand," chief executive Julian Cook said in a statement.

Summerset has 25 villages completed or in development across the country and 11 sites for development. It built 454 units in calendar 2018 and its landbank of 3,910 units as at Dec. 31 supports an increase in the firm's expected average annual build rate to 600 units over the next two to three years.

Government data show 1,992 retirement village units received building consent in the year ended Jan. 31. Consents have been tracking above 1,900 for the past five January years, up from the 1,367 units permitted in the January 2014 year.

No price was disclosed for the two land acquisitions and both are subject to Overseas Investment Office approval.

Wellington-based Summerset spent $54.7 million on land in calender 2018, $203.8 million on new villages and almost $10 million constructing new care centres. It spent a further $6.4 million refurbishing established villages and care centres.

Summerset said it expects to spend more than $250 million building the two villages, employing some 600 people during the construction phase and creating 40 jobs at each village once they're up and running.

The shares rose 0.6 percent to $6.55, outperforming the 0.7 percent decline on the S&P/NZX 50 Index this morning.

(BusinessDesk)

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