Summerset announces another $300 million of retirement village projects, in Cambridge and Whangarei

Tuesday, 4 June 2019

New Zealand's second largest retirement village operator announces $300 million plans to build two new villages, one in Cambridge and the other in Whangarei.

Construction in the retirement sector continues to gather momentum with the second biggest retirement village operator Summerset announcing another $300 million of development taking its development announcements this year to $550m.

Summerset said it had bought two big parcels of land for retirement villages, in Cambridge and in Whangarei, taking its development sites now to 12.

The construction of each would provide more than 300 jobs at both sites.

It follows Summerset's announcement three months ago of $250m of village development in Rangiora, just north of Christchurch, and in Blenheim. In Rangiora its plans a village of over 300 units and over 200 units in Blenheim

Summerset has announced $550m of village development this year.

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

Chief executive Julian Cook said Summerset had focused on buying a mix of large sites on urban fringes, retirement destinations and high growth regional centres.

*** Memory care centres to the fore as Summerset posts profit, and expands

The $140m village in Whangarei and $150m-plus village in Cambridge will each have about 200 units with about two-thirds of those independent-living units and a third serviced apartments. They will also offer a rest home, hospital level care and care units for people with dementia.

They will be Summerset's first villages in Cambridge and Whangarei.

The number of people over 75 is forecast to increase 45 per cent in the Waipa District in the next decade where the Cambridge village will be located. Pictured a communal resident lounge at its Wigram Retirement Village.

The largest operator in New Zealand, Ryman Healthcare, recently revealed three village developments, a $150m village for 300 residents at Kohimaramara in Auckland, and $220m of development of two villages in Christchurch, one at Riccarton Park and the other a redevelopment of the former Bishopspark in the city.

Arvida, the fifth largest operator, is aiming to build 170 units in this financial year and will step that up to more than 200 in the following year.

Summerset chief executive Julian Cook said the company had been looking for suitable investments in Cambridge for some time and was pleased to find the site in a well-established suburb.

The Waipa district's 75-year plus population was forecast to increase by 45 per cent in the next ten years.

The purchase of the 8 hectare property on Laurent Road, north Cambridge, was subject to Overseas Investment Office approval.

The Whangarei property was 11ha at Mount Denby, about five kilometres from the city centre and 300 metres from the Paramount Plaza shopping area.

Cook said the Whangarei's 75-plus population was forecast to grow by 34 per cent over the next decade.

In the last 18 months Summerset had focused on buying a mix of large sites on urban fringes, retirement destinations and high growth regional centres.

'When added to our urban sites, such as Ellerslie, St Johns, Parnell and Lower Hutt, we have a good mix of new villages across New Zealand.'

Summerset announced a $98.6m profit for the 2018 calendar year in February.

In 2018 it completed villages in Wigram, Trentham, Katikati and Karaka. In 2019 they are working on Ellerslie, Hobsonville, Rototuna, Casebrook, Richmond, and Avonhead villages, and began construction in Kenepuru, Wellington and Te Awa, Napier.