Winton Reviewing Capital Structure To Underpin Long-term Development Plans

 Winton, one of New Zealand’s largest privately-owned residential and retirement property developers confirms the company is actively reviewing its capital structure, which includes the possibility of an NZX-listing to accelerate the company’s long-term development plans.

Founded in 2009, Winton privately owns a land bank of approximately 640 hectares of zoned and unzoned land across Auckland, Central Otago and Christchurch. The company focuses on the development of integrated master-planned communities with 29 projects at various stages across a diversified portfolio of 13 communities.

Winton founder and Chief Executive, Chris Meehan says: “Our vision is modelled on the highly-successful Mirvac and Stockland operators in Australia, whom I worked alongside over many years while building my real estate career.

“For a business like Winton we need to take a multi-decade view of the market and have in place a capital structure capable of delivering on an ambition to become New Zealand’s leading residential and premium retirement developer.

“We have recently appointed a new Board comprising substantial governance experience. We are also reviewing options to introduce new equity into the business, alongside existing shareholders who will maintain their full existing interests, ranging from a possible listing on the NZX, securing one or more large cornerstone institutional investors through to private equity funding. Grant Samuel, Jarden and Forsyth Barr have all been appointed to support this workstream,” says Mr Meehan.

Winton’s current development pipeline includes c. 7,500 residential lots and dwellings, apartment units and retirement village units from existing projects – with more than $680 million of gross pre-sales secured as at 30 September 2021. Approximately 75% of the company’s forecast gross revenue for FY22 and FY23 periods is pre-sold, and 83% of development costs are currently under contract.

“A lot of work has been done to get the business into a shape where the Board is comfortable and confident about welcoming external capital to accelerate the development of our portfolio of projects. Winton has always had very little debt and will continue to be run conservatively, founded on the consistent application of strict investment and development criteria,” adds Meehan.

Appointment of Julian Cook

Winton expanded into retirement village development in 2018 and Julian Cook has recently been appointed to the Winton Board as an Executive Director to lead the expansion of the company’s new Luxury Later Living retirement offering, Northbrook.

Julian previously worked with, and ultimately led NZX-listed Summerset Group over 11 years, initially as Chief Financial Officer and subsequently as Chief Executive Officer in 2014. Summerset had less than 2,000 residents when Julian joined and by the time he left, it was the second-largest retirement village operator with over 6,000 residents.

Winton is currently developing villages in Wanaka, Arrowtown, Christchurch’s Avon River and two in Auckland at Launch Bay and Wynyard Quarter. It is in the process of delivering an initial 917 retirement living units and 186 care suites across its existing retirement projects by FY27 – with its first residents on track to occupy a Northbrook retirement village in FY24.

Commenting on his appointment, Julian Cook says: “The high-end Northbrook retirement offering will be well received by a growing segment of the retirement market that is not currently well served. I look forward to playing a lead role to create market-leading retirement communities, delivering luxury living for our later years.”

Mr Meehan adds: “We could not be happier that Julian has joined the Winton team. We are incredibly excited about Northbrook’s entrance into the retirement space, and Julian’s involvement will ensure the execution of the strategy aligns with the vision.”

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