Summerset Group buys land for second New Plymouth village

Tuesday 7th August 2018

Summerset Group has purchased land to develop its second New Plymouth retirement village as it remains on track to build 450 retirements units across its New Zealand villages this year.

The 8.1-hectare property in Pohutukawa Place, Waiwhakaiho, is close to Fitzroy and Ngamotu golf clubs, Fitzroy Beach, and approximately seven kilometers from New Plymouth’s central business district, the Wellington-based company said in a statement.

“The new village will help to provide for the expected 37 percent increase in people aged over 75 in the New Plymouth area within the next decade,” Summerset chief executive Julian Cook said. Summerset, like other retirement village operators, is expanding its businesses to benefit from increased demand as people born in the country's post-war era reach the target age for operators.

Summerset's existing village in New Plymouth houses more than 200 residents. The new village will include around 300 homes, including two-and-three bedroom villas and serviced and so-called memory care apartments. In addition, a care centre will provide rest home and hospital-level care.

The memory care apartments - Summerset's first in New Plymouth - offer people living with dementia their own one-bedroom apartment with living space and bathroom in a secure environment.

The New Plymouth land purchase brings the company’s number of greenfield sites to eight across the country, including Te Awa in Napier, Richmond in Tasman, Avonhead in Christchurch, St Johns and Parnell in Auckland, Kenepuru in Wellington and Boulcott in Lower Hutt.

Summerset currently has 23 villages completed or in development across the country, providing a range of living options to more than 5,000 residents. The eight greenfield sites bring the total number of sites to 31.

Last month, Summerset said its underlying profit, which excludes unrealised valuation gains in the fair value of investment property, was between $43 million and $45 million in the six months ended June 30, up from $36 million a year earlier. Summerset will release its detailed results for the first half on Aug. 14.

Its shares edged up 0.7 percent to $7.65 in early trading on the NZX today.

(BusinessDesk)

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