Metlifecare increased interim profit 28 per cent to make $24.6 million after improved resales volumes, higher selling prices and re-establishing its $940m development programme.
Metlifecare has released its result for the half-year to December 31, 2019.
The company with total assets of $3.6b delivered 81 new homes in the period, made a 13 per cent development margin on new stock and made revenue of $65.3m, up 5.3 per cent.
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Chief executive Glen Sowry said the re-phasing of the development programme was now complete, with planning and construction activity now re-established.
"In mid-2019, facing increasing construction cost pressures, we deemed it prudent to slow the programme down for a short period while putting in place initiatives targeting future construction cost improvements."
The programme returned to full strength last October 2019, and construction at new village developments: Gulf Rise, Orion Point, Edgewater, Pohutukawa Landing and Fairway Gardens, he said.
The company was now on track to deliver around 220 new homes and beds in the 2021 financial year.
"We are encouraged by the level of interest our new villages are receiving, with inquiries for Pohutukawa Landing [Beachlands] and Fairway Gardens [Botany] especially strong. This is a testament to the quality living environments we are creating, our unique emphasis on the design and placemaking of villages and their connectivity with their local communities, all of which are core to our design principles," Sowry said.
On December 30, 2019, Metlifecare told the NZX and ASX that it had entered into a scheme implementation agreement with Asia Pacific Village Group to buy its shares for $7 each, subject to conditions including shareholder approval. APVG is owned by EQT Infrastructure IV fund, a global private equity investor.
Metlifecare's board signed a scheme implementation agreement with the private equity fund manager and recommended shareholders accept the offer valuing the retirement village operator at $1.49b.
Company chair Kim Ellis this month wrote to shareholders, giving timelines for the next steps in the deal proposed by Asia Pacific Village Group to buy all the shares for $7 each subject to conditions.
Shareholders will get more information in late March and a meeting is planned for April 29, Ellis said.
Asia Pacific Village Group is an entity created by Sweden's EQT Fund Management.