Retirement village giant Metlifecare’s $335 million expansion into Auckland, Hawke’s Bay - state consent for $34.5m land deals

Foreign-owned retirement giant Metlifecare headed by Earl Gasparich has won state approval for two land deals to enable a $335 million expansion.

The purchases allow the business with 36 existing villages to develop two more, after buying 12ha of Auckland and Hawke’s Bay land for a combined $34.5m.

It has bought in areas where many older people live.

The Overseas Investment Office granted consent for the business, owned by foreign entity EQT Partners Infrastructure Fund IV, to get the land, otherwise banned from foreign buyer purchases.

In 2021, the company restructured $1.25b of debt and established facilities to borrow an extra $650m for development.

The facilities were established with a syndicate whose lead arrangers were ANZ and Westpac.

“We already had support from ANZ and BNZ and now we’ve got Bank of China, ICBC and Metrics Credit Partners,” Gasparich said of the new facilities two years ago, which allow developments like those in Auckland and Hawke’s Bay to be built.

Metlifecare has not previously borrowed from the Bank of China, ICBC and Metrics.

Pukekohe

In the first and largest deal, the company paid New Zealand’s Searle Heights $23m for 8.6ha of land at Jellicoe Rd, Pukekohe. That application was made on December 19 and the decision released in the latest OIO announcements.

In 2019, the company was granted standing consent to buy property for housing, the OIO noted.

“This permits Metlifecare - or any joint venture with a non-overseas person in which Metlifecare holds at all times at least a 50 per cent ownership and control interest such as the applicant - to acquire up to a total of 120ha of residential land in up to 12 transactions by 13 June 2022,” the office said.

Those deals don’t include applications for land classified as sensitive which might be beside a lake, river or the sea.

That was the sixth land acquisition of land under the standing consent, the OIO said.

The company has big plans for Pukekohe. Gasparich said it would invest around $210m in its new site on Pukekohe Hill.

The land had expansive views overlooking the town and faced north toward Rangitoto Island, he said.

It is about 50km south of Auckland’s CBD but the CEO thinks the area has huge prospects.

“Pukekohe is one of the fastest growing secondary urban areas in New Zealand, with a vibrant and active community that we can’t wait to be part of,” Gasparich said.

Residents could live completely independently in apartments or villas but a hospital/rest home on the site is also planned to cater for everyone.

The design construction would reflect Metlifecare’s commitment to sustainability, cutting the village’s carbon footprint. Solar power generation, rainwater harvesting, waste minimisation and composting were planned.

Hawke’s Bay

In the second deal approval released this month, the OIO approved the deal for the company to buy Havelock North land. It is paying Greenstone Land Developments $11.5m for 3.4ha of land at Brookvale and Davidson Rds, Havelock North. That application was also made on December 19.

Matt Wickham, development director, said Metlifecare would invest around $125m in the 4.6ha Brookvale Rd site which has views of Te Mata Peak and is near wineries. The village would help meet the needs of senior New Zealanders in one of the country’s fastest-growing areas.

Hawke’s Bay was a desirable area to retire to because of its climate, local events and quality of life, he said in statements made pre-floods.

“We know that people of all ages and stages are choosing to move to the region for the lifestyle benefits it provides, and there is significant demand for exceptional retirement village living. We are confident that the bespoke village design and residential living experience offered by Metlifecare will ensure that this village is highly competitive and sought-after,” Wickham said of the new project when the company announced it.