Arvida on track to build 94 new units in second half, says Fletcher relationship 'strong'
By Rebecca Howard
March 12 (BusinessDesk) - Arvida Group says it's on track to complete 94 new units in the second half and has "strong relationships" with its development partners, including the beleaguered Fletcher Construction.
Of the 94 units, 85 units have already been completed and as of Feb. 28, 66 had been sold and settled during the second half, which ends March 31, the retirement village operator said in a statement. Arvida is on track to settle at least 70 new unit sales during the second half.
"Construction continues to progress well across all development projects,” chief executive Bill McDonald said. “We maintain strong relationships with our development partners that will see delivery of all projects to our expectations and to a high specification.”
Those partners include Fletcher Construction, which Arvida said remains committed to the completion of Stage 1 at Rhodes on Cashmere in Christchurch. Tendering for Stage 2 of the development is currently being finalised, with construction expected to commence later this year as scheduled, said McDonald. Stage 1 involves building 18 apartments, while stage 2 will include another 12 apartments and 36 care suites, according to Arvida's annual report.
Fletcher Construction, a unit of Fletcher Building, saw heavy losses in its Building & Interiors division, which has dragged the group's net profit into the red. Fletcher Building recently unveiled further provisions at B+I, which amount to two-year losses of $952 million for a business that has some of New Zealand's most complex and expensive vertical construction projects on its books, on which it has faced significant cost blowouts. The company signalled its withdrawal from the sector and won't bid for new contracts.
Arvida shares last traded at $1.21 and have shed 4.7 percent this year. Fletcher Building shares fell 0.2 percent today to $6.40, having shed 16 percent so far this year.