No go for Hobsonville retirement village
Summerset has had its resource consent to build a retirement village on the outskirts of Auckland declined, but the firm says this will not affect its development timetable.
The Auckland Council yesterday notified the company that while the proposed Hobsonville development would have positive effects for the wider community, it did not meet existing landscape and heritage standards in its present form.
Summerset chief executive, Norah Barlow, said the retirement village operator had worked hard to be respectful of the coastal site, and would be appealing the ruling in the Environmental Court.
"Auckland needs housing, this is a great location, a beautiful site, and we want to make the best of it," she said.
The firm stressed the rejection would not affect the forecast build-rate of 200 units by the end of 2013 or the longer-term build-rate of 300 units by the end of the 2015 financial year.
"We have multiple pieces of land going through development at one time," Barlow said, adding that most developers were familiar with delays on resource consents.
The firm is hoping to lodge the appeal before the end of the year.
Today's announcement comes days ahead of Summerset's annual results, which are due to be released to the market on Monday, with investor-expectation running high ahead of the official numbers.
Summerset shares slipped 3.9 per cent in early trade today at $2.44, but have gained almost 9 per cent since the beginning of the year, and have risen by $1 on a 12-month basis.
In guidance released to the market in January, Summerset said both new and existing occupation rights had gained 55 per cent and 33 per cent respectively in the 12-months ending December 31, exceed pre-IPO forecasts.