Summerset buys a big Melbourne land block for its first Australian retirement village

Tuesday, 24 September 2019

Summerset is building a new retirement village in Nelson.

Summerset, New Zealand's second largest retirement village operator, has acquired an eight-hectare property in Melbourne for its first village in Australia.

Summerset chairman, Rob Campbell, said it marked the next stage in Summerset's growth.

'The Board is pleased to have made this step after a lengthy period of investigation,' Campbell said.

It follows more than $550 million of development in New Zealand announced by Summerset in the past year.

Summerset chief executive Julian Cook says the Melbourne property market is recovering and prices increasing after a year of decline.

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

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

The company said a few weeks ago at its annual result that in three years' time it expected to be building an average of 600 units a year.

New Zealand's largest retirement village operator Ryman Healthcare has two villages operating in Melbourne, three where site works are underway or close to and another five in planning and design.

The property Summerset had bought was in Cranbourne North, an established suburb in the south-east of Melbourne, and close to a number of shopping centres, a golf course, public transport and would be adjacent to a public reserve with walking tracks, the company said.

Summerset chief executive Julian Cook said the site was a good entry point for the company's growth plans in Melbourne.

Kenepuru Retirement Village in Wellington, owned by Summerset, is opening in November 2019.

'We have made clear our plans for Melbourne for some time now and believe this market is an attractive growth opportunity for us,' Cook said.

Melbourne's ageing population was underserved by quality retirement village and aged care offerings.

'Summerset will be introducing its continuum of care retirement village model to Victoria, which is not a common feature of many retirement villages there. Our research indicates that there is strong demand for this style of village.'

Village design was progressing and would include a signature main building and single-level villas.

Cook said the Melbourne residential property market was starting to recover after a period of decline. Residential property prices had started to increase in the past three months after declining 11 per cent in the previous 12 months.

'The demand for our retirement living and aged care is not driven by the residential property market; however, the stabilisation of the residential housing market does mean we are entering the market at a good point in the property cycle,' Cook said.

Summerset began operations 22 years ago and now has 28 villages completed or in development in New Zealand and a further 10 sites for future villages.