Summerset buys more land to beef up $100 mln Casebrook village in Chch
By Paul McBeth
Nov. 13 (BusinessDesk) - Summerset Group has bought more land in Christchurch to add another 71 units to the $100 million Casebrook village which is under construction.
The Wellington-based company bought 2.1 hectares for an undisclosed sum, which it says will expand the village to more than 340 units, a rest-home and hospital-level care, and the Summerset's first dementia care centre in Christchurch.
"We are seeing strong enquiry for our Casebrook village, which is currently under construction, with the first homes available to move into in March next year," chief executive Julian Cook said in a statement.
Summerset was granted resource consent for the $100 million village in 2015, saying at the time the site would offer 237 homes and a 49-bed care centre with rest home and hospital-level care.
The company has 22 villages completed or in development and another seven sites ready for development and is targeting 450 new units by the end of the year. Government figures show consents were issued for 1,856 retirement village units in the year ended Sept. 30, down from 2,037 a year earlier.
Like other retirement village operators and developers, Summerset is targeting New Zealand's ageing demographic with major expansion plans. However, the election of the Labour-led government has been seen as a potential headwind for the sector with policies aimed at taking the heat out of the residential housing market, a key plank for driving prices for retirement village units.
Summerset shares were unchanged at $4.76, and have increased 1.7 percent so far this year, lagging behind a 16 percent gain on the S&P/NZX 50 Index.