Archive | Metlifecare

Metlifecare’s Botany site price disclosed

Metlifecare Ltd’s Botany site, bought through Bayleys 4 months ago for a retirement village, cost it $21 million.

Metlifecare bought the near-level, north-facing site, formerly part of the Pakuranga golfcourse, to build a $140 million retirement village. Its plan is for about 160 independent living units & serviced apartments plus care facilities.

South

Botany Downs

197 Botany Rd:
Features: 2.38ha site zoned mixed housing suburban
Outcome: sold for $21 million, at $882/m², to NZX-listed Metlifcare Ltd
Agent: Dave Stanley

Attribution: Agency release.

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Metlifecare hits $3 billion of assets

Metlifecare Ltd reported a record profit on Monday of $251.5 million for the June year as it lifted total asset values by 14% to $3 billion.

Chief executive Glen Sowry said the company also achieved big increases in realised resale gains & development margins. The value of Metlifecare’s net tangible assets increased 21% ($1.11)/share to $6.43/share.

Mr Sowry said Metlifecare had made tremendous progress during the year: “We delivered on our growth targets with the completion of 235 new units & care beds – more than double last year’s number – while at the same time increasing the development margin to 23% from last year’s 13%. “Additionally, our sharpened commercial intensity has contributed to strong price growth and we have outperformed the market in the areas our villages are located. Demand has remained consistently high and we have maintained 98% village occupancy.”

Mr Sowry said Metlifecare would leverage the momentum this year: “Accelerated growth remains core to our strategy. Our analysis shows strong long-term sector fundamentals in our regions, including the continued increase in anticipated housing demand, an ongoing undersupply of housing development and the escalating growth of our target demographic. Projections show that the population aged over 75 in our regions will double to around 225,000 potential customers in the next 15 years.

“With our expanded development programme well established, we will also be heavily focused on further targeted land acquisitions to enhance our longer-term land bank.”

Performance highlights (2016 in brackets):

  • Reported net profit after tax up 10% to $251.5 million ($228.7 million)
  • Underlying profit, which removes unrealised gains in asset values, up 24% to $82.1 million
  • Net tangible assets/share up 21% to $6.43
  • Underlying operating cashflows up 2% to $51.3 million
  • 235 development units & care beds delivered, up 124%
  • Realised development margin up from 13% to 23%
  • Embedded value/unit up 29% to $269,000/unit
  • Loan:value ratio down from 6.3% to 4.8%
  • Final dividend of 5.8c/share, lifting total for the year by 40% to 8.05c/share.

Attribution: Company release.

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Metlifecare gets Red Beach consent after village redesign

Metlifecare Ltd has been granted resource consent for the development of a new retirement village on its 5ha site at Red Beach, on the Hibiscus Coast.

Chief executive Glen Sowry said today the new village would differ from anything Metlifecare had done before: “After our original resource consent application was declined in November 2016, we took the opportunity to start again with some bold ideas about how we will meet the needs & expectations of our next generation of residents while also becoming an integral part of the local community.

“We believe the new design, which we have developed in collaboration with local residents & the council, represents a whole new approach to retirement living & aged-care support. We have created an urban neighbourhood precinct which combines all the benefits of a fit-for-purpose retirement village within a wider community environment that promotes & enables inter-generational & social integration, both of which we believe will become increasingly important to residents in the future.”

Mr Sowry said the new village would comprise about 320 units & beds, providing the full continuum of independent living & care apartment options including villas, manor houses, apartments & hospital-level care.

“The flat site has given us some real flexibility in our building configuration, with all parts of the village easily accessible for older residents while merging seamlessly with the surrounding neighbourhood.”

Metlifecare expects the total investment over the life of the project to exceed $200 million, and Mr Sowry confirmed the revised village design would comfortably meet Metlifecare’s investment criteria & margin thresholds: “While the revised scheme is less intensive, we are confident this retirement village concept will be well received by the community and adds significant value to the company. Our modelling indicates that each completed unit will add about 25% of its value to our net assets.”

The company expects to spend 4 years building the village, starting with site works in October. Mr Sowry said the first units were planned for completion by mid-2019, and said the new scheme provided the company with a staging flexibility which didn’t exist in the previous scheme, allowing construction to be accelerated according to demand.

“We believe demand for this village will be strong. The Hibiscus Coast has one of New Zealand’s fastest-growing populations, with people moving from far & wide to enjoy its relaxed lifestyle.”

Earlier stories:
5 August 2016: Propbd on Q F5Aug16 – Wiri site for Turners, Ryman at Hobsonville, Metlifecare unconditional at Red Beach, port alliance, Stride buy OK
13 January 2015: Metlifecare buys 5ha of Red Beach golfcourse for new retirement village

Attribution: Company release.

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Metlifecare plans 27th village for Botany

Metlifecare Ltd has conditionally bought a 2.38ha site in Botany for a $140 million retirement village.

Chief executive Glen Sowry said on Friday the proposed village at 197 Botany Rd, next to the Pakuranga Golf Club, was likely to have about 160 units in a 2-level development which would contain independent living units, serviced apartments & care.

The site “fits with our vision to create unique villages which integrate with their local surroundings to become retirement destinations. The fabulous outlook over the neighbouring golfcourse offers us the opportunity to build a ‘country club’ style village in an area exceptionally well serviced, with nearby amenities including shopping, sporting, recreational & medical facilities.”

Mr Sowry said Metlifecare had also considered the existence of a number of other retirement living options in the wider area, including 2 of its own villages, and its projections showed sufficient demand to accommodate these offerings.

He said the purchase was subject to third party consents being obtained. The conditions were expected to be satisfied by 9 June, and settlement would be the later of 28 July or 10 working days after the purchase becomes unconditional.

The new site will take Metlifecare’s total to 27 sites, 17 of them in Auckland. Metlifecare is on track to deliver at least 229 new retirement units & care beds at its 24 operational villages in the year to 30 June.

Attribution: Company release.

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Metlifecare clarifies targets

Metlifecare Ltd said in an investor update on Wednesday it intends to double delivery of new retirement village units & beds in the June 2017 financial year and is targeting a sustained programme of 300-plus beds/year from July 2018.

Chief executive Glen Sowry said in the 5 months since he joined the company he’d worked with the executive team & board to review & redefine its strategic priorities.

He said Metlifecare had a leading position in 2 of the country’s highest value-growth regions, Auckland & the Bay of Plenty: “Our focus is on targeted growth, and we have taken time to carefully consider where our offering currently fits in the market, as well as where it should fit in future.”

Mr Sowry said the company would focus on 3 key areas – acceleration of its development programme, capturing maximum value from its existing portfolio and competitive differentiation: “Our development programme has been stress-tested & revised, and we now have an accelerated programme that we are confident of delivering.”

The company is forecasting to more than double the delivery of new units & care beds to 229 in the June 2017 year, steadily increasing to a minimum of 300 new units or care beds/year by the year starting July 2018.

Mr Sowry said Metlifecare had improved its land acquisition strategy with enhanced mapping & clear investment criteria: “A number of opportunities are currently being explored, and we expect to complete at least one land purchase in the 2017 financial year to add to the existing pipeline of development projects.”

He said improving development margin was also a priority: “The company has invested in strengthening the development team in the past year, resulting in significantly increased capacity & capability for project planning, design, procurement & management. Strengthened systems, processes & supplier partnerships are likely to drive improved cost, quality & timeframes, and the company is consequently expecting its overall development margin to meet or exceed the minimum level of 15% in the 2017 financial year.”

Along with renewed emphasis on development, Mr Sowry said Metlifecare would continue to focus on optimising returns from its existing portfolio, and it wanted to significantly raise the bar on the food & dining offering to drive increased resident satisfaction & brand positioning: “We are working with leaders in the hospitality sector to create a new level of dining & hospitality experience.”
Metlifecare operates 24 retirement villages.

Link:
Investor update presentation 7 September 2016

Attribution: Company release.

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Metlifecare profit leaps

Retirement village owner & operator Metlifecare lifted net profit after tax by 86% for the June year and, even on the measure of underlying profit, was 26% ahead.

Underlying profit removes the impact of unrealised gains on investment properties and excludes one-off gains & tax expense.

The company said its net profit growth was propelled by substantial movement in the fair value of its assets as well as improved operating performance. Total asset values increased by 16% and earnings/share were $1.08 (58c last year).

Chief executive Officer Glen Sowry said the result was driven by high occupation right agreement sales for new & existing units and was assisted by continued high property value growth in the company’s stronghold regions of Auckland & the Bay of Plenty.

Highlights:

Reported net profit after tax, up 86% to $228.7 million
Underlying profit, up 26% to $66.1 million
Net operating cashflow, up 56% to $130 million
Net operating cashflow excluding first-time sales of occupation right agreements, up 47% to $50.5 million
Sales of occupation right agreements, up 16% to 568
Total occupation right agreement sales, up 31% to $256.4 million
$131.9 million invested into new & existing villages, up 56%
Total assets, up 16% to $2.586 billion
Final dividend, 4c/share increases total by 28% to 5.75c/share

Attribution: Company release.

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Propbd on Q F5Aug16 – Wiri site for Turners, Ryman at Hobsonville, Metlifecare unconditional at Red Beach, port alliance, Stride buy OK

Turners buys Wiri property for anticipated business growth
Ryman buys at Hobsonville
Metlifecare unconditional on Red Beach site
New alliance between Auckland & Napier ports
Stride acquisition of 2 Westfield malls gets OK

Turners buys Wiri property for anticipated business growth

Turners Ltd has bought a 1ha site on the corner of Roscommon Rd & Vogler Drive in Wiri for $4.8 million. Chief executive Todd Hunter said on Wednesday the company bought the property to extend its footprint into South Auckland and to allow for the expansion of Turners’ fast-growing truck & machinery business.

“Acquisitions of strategic property sites are becoming an increasingly important part of the growth strategy for Turners Group NZ (ex-Turners Auctions) to allow for further footprint expansion as the business grows, and to achieve stronger control over property overheads. As part of this strategy Turners have previously purchased properties in South Auckland & Christchurch.”

This property is a highly visible corner site with easy access to motorways & arterial roads.

Ryman buys at Hobsonville

Ryman Healthcare Ltd will invest over $200 million developing a new 4ha retirement village site on Scott Rd, Hobsonville.

Ryman chair David Kerr told the annual meeting in Whangarei on 27 July the village would offer independent living & care options for over 400 residents.

The company also expects to have work underway on its second site at Brandon Park in Melbourne this year. In February, Ryman announced it had bought a third site at Burwood East and was on target to have 5 villages open in Melbourne by 2020.

Metlifecare unconditional on Red Beach site

Metlifecare Ltd said on 29 July it had gone unconditional on acquisition of a site on the former Peninsula golfcourse at Red Beach for its 16th Auckland retirement village. Settlement is due on 19 August and a resource consent hearing is scheduled for 30 August.

Chief executive Glen Sowry said the village would become home to over 500 residents and was planned to provide a full range of living options, including a 68-bed care home & a retail precinct.

Work to re-contour the golfcourse is intended to start soon, so development of the village can start in October 2017. Construction of the first stage is planned to be completed and the first residents welcomed in 2019.

Earlier story:
13 January 2015: Metlifecare buys 5ha of Red Beach golfcourse for new retirement village

New alliance between Auckland & Napier ports

Ports of Auckland Ltd & Napier Port announced a strategic alliance on Wednesday to provide operational, economic, sustainability & community benefits.

Ports of Auckland chief executive Tony Gibson said the partnership would allow the 2 ports to work together to find ways to optimise services for freight customers and achieve further scale & efficiencies in the supply chain: “It will prompt even greater competitive contestability & resilience in New Zealand’s supply chain to help lower costs to exporters & importers.

“There is a natural fit between Ports of Auckland & Napier Port. We share a similar way of working, common customers & supply chain opportunities and have similar ownership structures, so that’s a great base to work from.”

Stride acquisition of 2 Westfield malls gets OK

The Overseas Investment Office has approved Stride Property Group’s acquisition of the Westfield Queensgate shopping centre in Lower Hutt and the Westfield Chartwell shopping centre in Hamilton, through its wholesale investment vehicle, the Diversified NZ Property Trust.

Stride announced last November that Diversified had entered into an agreement with Scentre Group to acquire the shopping centres for $445 million.

Stride Investment Management Ltd, part of the Stride Property Group, manages Diversified’s property portfolio under a 10-year contract.

Stride chief executive Peter Alexander said new-look branding would be unveiled at each centre on settlement day. Stride expects to complete the deal by 22 August.

Earlier story:
27 November 2015: Scentre sells 3 malls to locals, one to go

Attribution: Company releases.

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Propbd on Q F1July16 – Stride restructure approved, Arvida settles buy & Metlifecare settles exit from Masterton

Stride gets 82% approval for restructure
Arvida settles Masterton acquisition
Metlifecare settles sale of its Masterton village

Stride gets 82% approval for restructure

Stride Property Ltd shareholders approved changes to its constitution by an 82.4% vote in support yesterday, enabling the restructure which includes creating stapled securities and the listing of a new company, Investore Ltd.

Stride’s existing shares will stop being quoted on Monday 11 July and the shares in Stride Investment Management Ltd will be listed the next day. For every share in Stride, shareholders will get a share in the manager, and they’ll be stapled so they can’t be sold separately.

Stride shareholders will also get one Investore share for every 4 existing Stride shares, and will initially hold 33.4-38.2% of Investore.

Stride will retain 19.9% of Investore and is seeking $185 million in an IPO (initial public offering). Investore’s shares were valued in a range of $139.5-204.5 million, and the indicative price range for the IPO was $1.37-1.49/share. After the bookbuild, the price was set at $1.49.

Investore confirmed yesterday that the acquisition of the portfolio of properties from Shopping Centres Australasia Property Group Trustee NZ Ltd was unconditional and it intended to settle its acquisition of the tranche 1 assets on 12 July. Investore expects to allot shares under its IPO on 11 July.

S&P Dow Jones Indices said yesterday it would add Investore to all S&P/NZX indices of which Stride is a constituent after the close of trading on Wednesday 6 July at a zero price. No other stocks will be removed, so the S&P/NZX 50 & S&P/NZX 50 Portfolio indices will temporarily carry an additional constituent.

Earlier story:
13 June 2016: Stride unveils stapled structure & Investore IPO

Arvida settles Masterton acquisition

Arvida Group Ltd said yesterday it had settled its $20.7 million acquisition of the Lansdowne Park retirement village in Masterton. The village has 93 retirement village units, 50 aged-care beds & over 170 residents.

Arvida funded the purchase by drawing $14.7 million of debt and issuing $6 million of new shares to the vendors.

Earlier story:
27 May 2016: Arvida well ahead of forecasts

Metlifecare settles sale of its Masterton village

Metlifecare Ltd confirmed yesterday it had settled the sale of its Wairarapa Village in Masterton to a group headed by Mark Durling for $6 million.

Metlifecare chief executive Glen Sowry said the sale presented the company with an opportunity to reallocate capital to continue its focus on greenfield & brownfield developments in high growth areas that represented stronger future yields.

Earlier story:
25 April 2016: Metlifecare sells Wairarapa Village

Attribution: Company releases.

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Metlifecare sells Wairarapa Village

Metlifecare Ltd has agreed to sell its Wairarapa Village in Masterton to a group headed by Mark Durling for $6 million cash, subject to 2 conditions to be satisfied by 31 May.

The first is to get the statutory supervisor’s approval, including relating to the buyer’s financing & security arrangements, and the second is the transfer of the required Ministry of Health & district health board contracts for operation of the village’s care home.

Subject to satisfaction of those conditions, settlement is scheduled for 30 June.

Metlifecare chief executive Glen Sowry said last week: “Wairarapa Village operates in a market that has lower opportunities for growth for Metlifecare, due to local market dynamics & a less attractive real estate environment. This agreement presents an opportunity to reallocate the capital receipted from this sale to continue the company’s focus on greenfield & brownfield developments in high growth areas that represent stronger future yields.”

Mr Durling owns Medlands Beach Lodge Ltd, which runs the exclusive Medlands Beach Lodge on Great Barrier Island, and is a director & shareholder of NZ Life Care Ltd. He was previously a regional operations manager for Oceania Healthcare Ltd.

Attribution: Company release.

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Whillans completes 3 transactions

Whillans Realty Group Ltd has completed 3 notable transactions – an apartment development site on Hobson St (image above of potential development), a Grafton property and an Albany property to Metlifecare Ltd – in the wake of its large sale in February of Kauri Property Fund Ltd’s Tamaki estate to the Goodman Property Trust (where Whillans’ image of the site was used without naming the agency).

Metlifecare settled its purchase of an Albany site for a retirement village last week, but still didn’t put a price tag on it. The agency involved in the transaction, Whillans Realty, says it went for $750/m².

CBD

Victoria Quarter

201 Hobson St:
Features: 
563m² strategic management area 3 development site backing on to the narrow Nicholas St, which runs between Hobson & Nelson Sts, with resource consent for a 12-storey 60-unit apartment block, vacant 2-storey commercial building between 12-storey Stanford Apartments & 2-storey Hobson Lofts
Outcome: sold for $4.69 million at $8326/m²
Agent: Brice Clark

Isthmus east

Grafton

11 Park Avenue:
Features: 769m² residential 7B site, character dwelling with net lettable area of 246m²
Outcome: sold for $3.4 million at $4421/m²
Agent: Henry Thompson

North-east

Albany

98 McClymonts Rd, block A1:
Features: 3.17ha development business 11A site on the corner of McClymonts Rd & Don McKinnon Drive
Outcome: sold to Metlifecare Ltd for $23.7 million at $750/m²
Agent: Bruce Whillans

Earlier story:
11 February 2016: Goodman buys Panmure development site

Attribution: Agency release.

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