Rotorua retirement village changes hands, $12m investment in the works

Managing director of Regency Park Estate Dennis Walsh will be handing over the reins of the village from tomorrow. Photo / File

Local retirement village Regency Park Estate will officially be changing hands from tomorrow, with a $12 million investment already planned for future development.

Karaka Pines Villages, a Tauranga-based company, will be adding the 59-unit Brent Rd retirement village to their group of villages owned nationwide.

The team plans to build an additional 30 units on the site and will begin the process of gaining resource consents with the aim of beginning construction next year.

The future development will cost $12m and will be a mix of two and three-bedroom units typically with a single garage.

A point of difference for Karaka Pines Villages was that residents were able to keep the capital gain upon sale of their units.

An aerial view of the village from 2017. Photo / File

This financial model was basically identical to the current model operating at the retirement village and part of the reason the Karaka Pines Villages directors went for it.

Co-director Andrew Dallas said the team were drawn to this financial model as it was "intrinsically fairer" for the residents.

The idea was that residents were able to sell their property as they wish and gain the capital gain on it, however, a fee would go to the owners of the village.

"It's not freehold, but highly similar in terms of rights."

He said the team did have plans to take over and even build more villages in the Bay of Plenty as it was a booming centre and close to home for them.

The directors Adam Yates, Luke Meys and Dallas had planned a morning tea with all the current residents at Regency Park Estate tomorrow to get to know them.

Dallas said the current village seemed "really nice" and "happy", so they wanted to make this did not change.

Current owner of Regency Park Estate Dennis Walsh said he had been operating the village for 25 years and was ready to retire himself.

He said it was his time to relax and laughed as he said he could end up in the village down the track.

Karaka Pines Villages currently look after Kempton Park in Tauranga, Karaka Lifestyle Estate in South Auckland, Karaka Pines Rototuna, Roseland Park in Hamilton and Woodcroft in Christchurch.