Summerset owns a string of retirement villages throughout New Zealand.
Two financial giants are going head-to-head for $400 million of investors' cash in two retirement village floats.
Dutch finance group ING yesterday said it would float its villages in Epsom and Remuera, pitching itself against Australian heavyweight AMP to be first to the market with a share offer.
The floats will double the number of listed retirement village operators on the NZX. Ryman Healthcare and Metlifecare are the only current listed eldercare specialists, with a combined market capitalisation of $1.7 billion.
ING wants to raise $100 million from shares in its retirement business which will be called ING Real Living. The float will be managed by Forsyth Barr.
Last month, AMP NZ Capital Investors said it would float 80 per cent of its Summerset retirement village business, which was established in 1994 and owns a string of villages throughout New Zealand.
This float is expected to seek about $300 million, and is likely to be the year's largest.
AMP spokeswoman Jane Anderson could not give any further details on the Summerset float or say when the prospectus would be issued.
But it is understood AMP is aiming to have Summerset listed by September, and Real Living is scheduled to float in late September or early October.
ING, which is floating Real Living with Symphony Investments, said yesterday it was considering developing a further property in Remuera. The company's float would offer up to $100 million of stapled shares.
ING and Symphony are already in partnership, jointly controlling the manager of listed ING Property Trust.
Real Living will be chaired by former Metlifecare chairman Peter Fitzsimmons.
Ricky Ward of Tyndall Investment Management said the two new floats would provide alternatives for investors who could now only get exposure to the sector from two companies.
But some investment analysts said the ING float was far too small to attract interest from big institutions.
ING Real Living
* Raising $100 million.
* Villages in Epsom, Remuera.
* Another village planned.
Summerset
*Aiming to raise $350 million.
* 11 villages, 1600 retirees, 400 staff.
