New Auckland site for Summerset

HAMISH RUTHERFORD
Last updated 09:14 21/11/2012

Relevant offers

Industries

Westport's mayor off to England to investigate waste-to-energy plant Climate breakthrough: grass logs carbon emissions from power plants Kiwis still flock to the movies, Event Cinemas makes a profit despite online competition Trade Me won't get Stratford property data, but it already has New Plymouth and Hawera's How they make it: Dad's Pies on growth path as Japan develops appetite for pies Harmoney says court case could 'spell the end' of a growth industry Australian asbestos discoveries ring alarm bells in NZ Chorus chief executive Mark Ratcliffe won't seek another full-time role Update your iPhone to avoid major security flaw, users told Agent who 'flipped' house facing fraud charges

Summerset, the retirement care company which floated last year, is to ramp up its build rate as it announces another new Auckland site.

The Wellington-headquartered group said it had bought a new 3.8 hectare site at Ellerslie, which will become its 19th village. It is the second site Summerset has bought in New Zealand’s largest city since it floated on the NZX in November.

“Summerset recognises the Auckland region is growing rapidly in terms of both overall population and people aged over 65,” chief executive Norah Barlow said in a statement.

“Summerset has its sights set on Auckland. This land in Ellerslie is an opportunity for us to provide Auckland with another high quality, modern Summerset retirement village.’’

The announcement came as Summerset laid out plans to speed up its development. In last year’s prospectus the company said it intended to build 155 units in the 2012 financial year, rising to 250 a year by 2015.

Today Barlow said the company would build 200 units in 2013, rising to 300 a year by 2015. Currently the company has 1554 units.

“Further announcements are likely in the new year regarding the commencement of building at existing sites as well as the acquisition of new sites,” Barlow said.

To help fund the development Summerset has arranged debt facilities of $180 million, an increase of $30m. The company was not seeking new capital from investors.

Shares in Summerset, which floated at $1.40, hit a record high of $2.04 in late October and closed at $1.97 last night.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content