Summerset plans $130m Auckland village

HAMISH MCNICOL
Last updated 11:00 08/08/2014

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Retirement village and aged-care operator Summerset has been granted resource consent for a 400-person, $130 million village in Auckland.

The Wellington-based listed company said today that the proposed 3.8-hectare village would consist of 250 homes and be built on the former site of St John's regional offices in Ellerslie.

It would be made up of townhouses, villas, apartments and an 80-bed care centre offering rest home and hospital-level care.

Chief executive Julian Cook said Ellerslie was underserved in retirement village offerings.

"This village will be an important addition to the community," he said.

"People won't have to move away to enjoy top-quality retirement village living and neither will they have to leave their community should their needs change."

Summerset aims to build 300 units a year from from 2015, with 250 units to be built this year.

The company started work this year on a $70m village at Karaka and a $120m village at Hobsonville.

It welcomed its first residents to these villages recently and would have spent $500m on developing Auckland villages when the Ellerslie site was completed.

Construction on the Ellerslie site would employ about 300 people, the company said.

Cook said sales at the new Auckland villages had been "excellent".

Summerset's net profit for the year ended last December 31 more than doubled to $34.2 million after a third consecutive year of record sales.

Occupation rights sales increased by 21 per cent. Gross sales exceeded 400 units for the first time, valued at $130m, up 28 per cent on the year before.

Cook has said there would be 820,000 people aged over 75 in New Zealand by 2051, which would account for 14 per cent of the population.

Summerset will announce its interim results early next week.

Last week, another listed provider, Ryman Healthcare, announced a plan to build a $100m retirement village in Greenlane, Auckland.

It also plans a $120m project at Rangiora, north of Christchurch.

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