Excavations for a second new Parnell retirement building at The Foundation by Wilkinson's Generus. Photo / Generus Living Group
Excavations for a second new Parnell retirement building at The Foundation by Wilkinson's Generus. Photo / Generus Living Group
Retirement village pioneer Graham Wilkinson has a $360 million expansion underway at two of his six villages: Generus Living Group’s Auckland and Christchurch sites.
Excavations have been made for a new building at The Foundation inwhat Wilkinson said would be a $200m project, taking the value of that village alone on Blind Low Vision — previously the Blind Foundation — land to a value of $300m.
Holly Lea, at 123 Fendalton Rd, has a new $25m hospital and Wilkinson is planning more retirement living in two apartment blocks he said would be worth about $35m.
Graham Wilkinson says residents he talks to are insulted about complaints others make. Photo / Supplied
The Queenstown-based ex-policeman turned accountant wholly owns Generus, which also owns Auckland’s Ranfurly village and hospital, Mount Maunganui’s Pacific Coast and Pacific Lakes, and The Russley in Christchurch.
Properties are either wholly owned or in partnership with charitable trusts and iwi. For example, the Ranfurly War Veterans Trust sold a 100-year lease of the 2.7ha site to Wilkinson.
Wilkinson has been involved in the sector for almost 30 years and has sat on the Retirement Villages Association executive since 1997. He has been president for the past seven years and has seen significant change from his initial involvement.
“The most striking issue has been the acceptance and mainstreaming of retirement village living. Around 14 per cent of the total population of New Zealanders aged 75 and over live at villages, and this will continue to grow,” he predicted.
But the wants and desires of the new retirees are changing, from a generation born in the Great Depression to the next generation below them.
Plans for the new building at Holly Lea in Christchurch. Photo / Generus Living Group
“The value proposition of safety and security, companionship, certainty of cost, and a pathway to care has never changed, but in recent years, the Baby Boomers have found villages and are wanting more facilities, more choice and expect a high level of service,” he said.
Accounts for his Pacific Coast Village in Mount Maunganui show that in the year to March 31, 2022, a net after-tax profit was declared of $27m, up from the previous $24m. But Wilkinson said that included a $23m gain on the value of investment properties, previously $21m.
Ranfurly Village accounts for the same periods showed a $12m profit last year, up from $9m previously.
Equity at the end of the year was put at $119m, up from $91m. Total equity at that village rose from $33m to $45m.
Holly Lea equity rose from $7.9m to $9.8m in the same time period.
Plans for the interior of a new building at Christchurch's Holly Lea. Photo / Generus Living Group
“Just like hotels, we are now seeing the village market segment into luxury, mid-scale and more modest offerings. The public is understanding this differentiation and is prepared to accept a higher price of entry, provided a higher level of service and amenity are provided.
Pricing is higher than previous Generus villages but set to the location, building quality and level of services including the conversion of Pearson House, a Category 1 heritage building opposite the Auckland Domain. That will become a private club, which Wilkinson compared to the Northern Club.
Excavations for a second new retirement building in Parnell at The Foundation by Wilkinson's Generus. Photo / Generus
Holly Lea had been progressively developed in stages, including a just-completed 37-suite hospital including a new dementia wing.
A consent application under the Covid fast-track system via the Environmental Protection Authority had been accepted for Heathfield Apartments, on the corner of Heathfield Ave and Fendalton Rd. That is one of the two buildings in the Holly Lea fast-track referral for a total of 30 apartments.
The value is $35m and that will mean the final value of the village will be about $120m, Wilkinson said.
The contractor is Simon Construction, which built the new hospital and 28 apartments added to the original lodge that had 66 apartments, Wilkinson said.
Jura limestone on the exterior of the first new block at Parnell's The Foundation retirement village. Photo / Generus Living Group
The Foundation at the Maunsell Rd intersection also had a fast-track referral accepted for the final stage. Design and costs are yet to be fully determined.
A third building is being planned there now.
“We are only at the early stage of resolving design of that third building and we are working hard to ensure it complements and integrates into this iconic precinct in Parnell. We are aware that all of Auckland wants to see an appropriate and classic building which aligns with our design brief,” he said.
The Nathan Residences is the first new building on the ex-Blind Foundation site.
The $300m-$400m development is a partnership between Wilkonson’s Generus and Blind Low Vision NZ, previously called the Blind Foundation, which owns historic buildings and the land.
Kalmar Construction is building the Nathan Residences, due to be finished this year.
Peddlethorp designed the buildings with Stewart Harris the interior designer. Its design was modelled on a British village.
“These will be extremely high-end design, technology and finishing,” Wilkinson said. Italian stone facade material worth about $2m clads the first building.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
