Summerset eyes fifth Wellington village with latest land purchase

Thursday 14th September 2017

Summerset Group plans to build its fifth retirement village in the greater Wellington region with the purchase of a 6-hectare block of land north of the city.

The Wellington-based company wants to develop a 290-unit village with a rest home and hospital care and is Summerset's seventh greenfield site, it said in a statement. The land is in Porirua's Kenepuru Landing development, a joint residential development between local iwi Ngati Toa and Tauranga-based developer Carrus Corp. No price was disclosed.

"Our other Wellington villages in Paraparaumu, Aotea and Trentham are extremely popular and our proposed Lower Hutt village has one of our highest databases for prospective residents, so we expect strong interest from Wellington retirees to make their home at our Kenepuru village," chief executive Julian Cook said. "The attraction of the site was its close proximity to public transport and local shopping facilities, which residents would be able to access via a pedestrian link."

Summerset added 171 retirement units across eight villages in the first six months of 2017 and expects to deliver 450 by the end of the year. Like other retirement village developers and operators, Summerset is targeting New Zealand's ageing population with a major expansion programme.

The company boosted first-half profit 78 percent to $90.3 million, bolstered by valuation gains on its $1.62 billion property portfolio. Retirement village operators are typically supported by an upbeat property market, getting stronger prices for the sale of occupation rights to their units.

Summerset has 22 villages completed or in development across the country, housing more than 4,400 residents.

The shares last traded at $5, and have gained 6.8 percent this year.

(BusinessDesk)

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