Two big retirement villages planned for Rangiora and Blenheim costing $250m-plus

Monday, 25 March 2019

Residents of a Summerset retirement village are enjoying yoga classes provided at the village.

New Zealand's fastest growing retirement village operator, Summerset Group, has announced the $250 million-plus development of two new retirement villages in the South Island – at Rangiora in Canterbury and Blenheim in Marlborough.

Emerging shortages in both areas were the motivation behind the development, the country's largest builder of retirement units last year said.

It had bought two parcels of land, 9 hectares (22 acres) in Rangiora and 6ha in Blenheim, for the developments, subject to Overseas Investment Office (OIO) approval of the land purchases.

Chief executive Julian Cook said OIO approval was needed because the land parcels were larger than 5ha and Summerset was considered overseas-owned as more than a quarter of its shareholders were overseas investors.

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Summerset saw shortages of retirement units coming in both locations, he said.

Summerset chief executive Julian Cook says the company expects shortages of retirement units in Rangiora and Blenheim over the next four years.

The two developments would include more than 500 units and apartments.

Cook said while the growth of people aged more than 75 was marked around the country, it would be at the higher end in Rangiora at 30 per cent and Blenheim at 26 per cent over the next four years.

The Rangiora retirement village would offer more than 300 independent living units and apartments and would be Summerset's fourth in Canterbury, a stronghold of rival operator Ryman Healthcare.

The Blenheim village would offer more than 200 independent living units and apartments and will be Summerset's first in the region dominated by the wine industry.

As well both villages would offer rest home, dementia and hospital care.

An artist's impression of Summerset Group's Casebrook Retirement Village in north Christchurch, now being built.

Total investment in both villages would exceed $250m.

Summerset had its own construction management team to oversee and supervise the building but used local contractors to do the physical construction work, Cook said.

The company was likely to start building the villages in a year or two. It had to complete master planning and then seek resource consent.

More than 600 people would be employed on both sites during the building and another 40 jobs would be created at each of the villages once they were operating.

In 2018, Summerset completed 454 units at villages in Wigram, Trentham, Katikati and Karaka.

In 2019, it is working on its Ellerslie, Hobsonville, Rototuna, Casebrook, Richmond, and Avonhead villages, and began construction in Kenepuru, Wellington and Te Awa, Napier

In total, Summerset has 25 villages either completed or in development in New Zealand and has another 11 sites for development including Rangiora and Blenheim.

Summerset recently announced underlying profits of $98.6m for 2018.

Chief financial officer Scott Scoullar was named CFO of the year this month by CFO Summit and Awards for increasing profits five-fold in four years, from $50m to $250m.