Fletcher Residential releases details of new Vivid Living retirement business

Steve Evans, Fletcher Residential and Development chief executive. Photo / Michael Craig

Fletcher Building's retirement village entree will be via new brand Vivid Living, to undercut the sector by keeping only about half the capital people pay to buy into villages compared with other operators.

But to make the offer more financially attractive, facilities such as hospitals and extensive recreational amenities won't be built, so the entry will be a pared-back version of competitors' offerings.

Steve Evans, Fletcher Residential and Development chief executive, said Vivid's first villages would both be in Auckland: One near Manukau, the other on the North Shore.

Instead of keeping 20 to 30 per cent of purchase prices, Vivid would retain only 15 per cent.

That is the deferred management fee, currently lowest at Ryman Healthcare at 20 per cent after three years, but higher at other companies' projects.

Evans said Vivid would also share capital gain on their properties, which most other operators don't.

"Residents moving into a Vivid Living community will enter an occupational rights agreement with a 15 per cent deferred management fee, lower than most traditional villages. Additionally, when the time comes to leave, residents will share in 50 per cent of the capital gains, less the cost of refurbishment, that results from the sale," a statement said.

Vivid's first homes will be at Waiata Shores near Manukau, where it plans 27 village units, and Red Beach on the North Shore, where it plans 48 places. A shared lounge will be developed at both places for retirement village occupants to use.

These are existing Fletcher Living development sites: Waiata Shores has about 350 homes already built and Red Beach about 250.

The Vivid retiree residents will get no hairdressing salons, men's workshops, bowling greens, indoor swimming pools or gyms - facilities offered at many other retirement villages and which are seen as attractive offerings.

"The target will be 70-plus," Evans said when asked if Vivid would set minimum age barriers, which many other operators have set at 75.

Nor will rest homes or hospitals be built for a potential continuum of care which many other retirement villages have to attract residents, even though it is district health boards and not village bosses which decide whether people can enter those.

Vivid's offer is for more independent retirees.

Fletcher has struck a deal with Private Healthcare NZ which has specialist care providers to help people to stay in their own homes. Spritely's aged-care friendly technology will also go into the Vivid homes.

The launch comes as Chris Meehan's Winton Land plans to list on the NZX and ASX on December 17, raising up to $350 million. Commitments have already been given on most of that.

Winton also has big retirement village plans, with village sites throughout New Zealand.

Vivid is now going through the registration process under the Retirement Villages Act and the first places will be sold in the next three months.