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Current as of 26/05/17 05:00PM NZST

Summerset buys land for second Nelson retirement village

By Sophie Boot

Summerset Group chief executive Julian Cook.
Summerset Group chief executive Julian Cook.

Summerset Group plans to build a second retirement village in Nelson after buying an eight-hectare site in Richmond.

The Wellington-based company intends to build a 280-unit village on the site, adding to its existing village in neighbouring suburb Stoke. Summerset estimates Nelson's over-75 population will more than double by 2033. No price was disclosed for the purchase.

"Our existing village in the Nelson suburb of Stoke is our largest village to date, and has been one of our fastest growing," chief executive Julian Cook said in a statement.

"This village is nearly complete and with the strong continued interest we are seeing we are pleased to be able to provide additional high quality, contemporary retirement village living and care options to meet the growing local demand for both the Tasman District and Nelson City areas."

Summerset has been acquiring land and accelerating its construction rate as the 'baby boomer' generation enters retirement age, with expansion plans underway in Auckland and Christchurch. In April, Cook said the company aimed to double its national footprint over the next six years as it develops sites at Wigram, Warkworth, Hobsonville and Trentham, and prepares to open a new village at Ellerslie toward the end of the year.

In February, it purchased a second site in Hamilton, in the suburb of Rototuna. The Richmond site is Summerset's fifth location in the South Island, bringing the total number of sites to 27 nationwide.

The shares last traded at $4.68 and have gained 15 per cent so far this year.

- BusinessDesk

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