Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Summerset lifts long-term build rate forecast, bumps up debt

Summerset lifts long-term build rate forecast, bumps up bank funding

Nov. 21 (BusinessDesk) - Summerset Group, the rest-home operator whose shares have jumped 49 percent this year, says it has lifted its long-term annual build rate for new retirement units and agreed to an increase in its bank facilities to help fund the expansion.

The Wellington-based company is now aiming to build 300 units a year by 2015 compared to a target in the prospectus for its initial public offering last year of 250 units a year by 2016.

Summerset has increased its banking facilities by $30 million to $180 million and said it doesn’t plan to tap shareholders for more funds to expand.

The shares last traded at $1.97, valuing the company at $427 million. The shares are rated a ‘hold’ based on the consensus of four recommendations compiled by Reuters, with a price target of $1.95.

The company said it is on track to deliver its IPO forecast of 155 retirement units in the 2012 financial year and now plans to build at least 200 retirement units in the 2013 financial year. It currently has 1,554 units.

“Our strong sales of occupation rights, range of quality new sites, and increased efficiency through the in-house management of the development and construction process has increased the rate at which we can expand,” said chief executive Norah Barlow, in a statement.

The company also said it has bought a 3.8 hectare development site in the Auckland suburb of Ellerslie which will become its 19th retirement village.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news