Archive | Retirement villages

Selwyn Oaks opens section offering new participatory style of residential aged care

The Selwyn Foundation opened a new $14 million development offering residential aged care & retirement village amenities at Selwyn Oaks village in Papakura today.

The 3-storey Lees Centre will offer fully serviced residential aged care suites within an innovative ‘household’ setting, as well as an extensive range of leisure amenities for residents.

The 48 care suites have been developed according to the ‘household’ layout, a new concept in the provision of residential aged care in New Zealand based on international best practice.

Village manager Roland Phillips said: “By having 4 small communities or ‘households’ of 12 residents, the care suites will provide an environment where people who live there have a real sense of belonging and feel truly at home. Each ‘household’ will function like a home, where residents have their own room with ensuite and share a spacious lounge with open-plan dining & kitchen area, leading to a large outdoor deck & seating.

“The layout is designed to support our new way of delivering care. Our unique ‘care partnership’ approach provides holistic care planning focused on all aspects of a person’s wellbeing. The interior plan and the accessibility features promote people’s independence, and a new way of working for our staff reflects the importance we place on the whole person & their overall wellbeing, and will enable residents to continue to take charge of their own lives, be empowered & heard by all their care partners.”

The Selwyn Foundation says it’s the first provider in New Zealand to offer this participatory style of hospital-level care – one that’s based totally around residents’ individual needs and what they want out of life.

Mr Phillips said: “We’ve developed this following a review of the most innovative thinking in residential aged care provision & service delivery, and then created our own unique version. In the Selwyn model, our residents direct us on what’s important for them, with our care team then formulating a personal & tailored care plan based on the person’s individual needs. The care team has a guiding role and will support the resident to make the best decisions about their own wellbeing & lifestyle within the care home.”

The care suites are on the first & second floors of the Lees Centre, which also has a social hub on the ground floor for the whole village to enjoy.

“During the planning stage, we discussed with our residents what suggestions they had for the new building, so they could input into the process and contribute ideas on what they would like to see in terms of the community leisure & social amenities on the ground floor.

“The new amenities will include a café & dining area, lounge & activity rooms, a residents’ shop, hair salon & an outdoor barbecue space, as well as administration offices & an area designated for worship services, and will offer a warm & welcoming centre for group activities & social get-togethers.”

The centre is named in recognition of the outstanding contribution of the late Ted & Rowley Lees in the establishment of Selwyn Oaks village.

Attribution: Foundation release.

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Blackstone’s Arena Living buys Mt Eden Gardens

US asset managing giant Blackstone Group LP’s local retirement village owner & operator, Arena Living NZ Ltd, has added a 6th village to its portfolio, Mt Eden Gardens. The price hasn’t been disclosed.

Blackstone bought Lendlease Group’s 5 villages in 2016 and changed the name to Arena Living Ltd. 4 of those villages are in Auckland – the Knightsbridge, Mayfair & Parklane on the North Shore and Peninsula Club at Whangaparaoa – and the other, Ocean Shores, is at Mt Maunganui. Lendlease bought them from Bev Collins’ Primecare retirement village business in 2005.

This time the acquisition is from 2 directors of construction group Arrow International Group Ltd, Ron Anderson & Bob Foster, who were instrumental in establishing Vision Senior Living Ltd in 1999, and Aaron Armstrong, an Auckland chartered accountant who was also an original Vision director.

Vision & Private Life Care Ltd were merged into Metlifecare Ltd in 2012, but the 2 Arrow founders maintained retirement village interests through other companies.

Mr Armstrong became a director of Arena Living last June and is a director of Blackstone’s new Mt Eden Gardens company.

Mt Eden Gardens has 36 apartments, and Arena Living chief executive Richard Davis said it had a reputation as an excellent retirement village.

He said Arena Living had spent the last 2 years improving its original 5 villages and ensuring it was resourced to deliver better living experiences for all its residents: “Major building projects, refurbishments & ground upgrades, along with establishing a leadership team, and streamlining processes within the company have all been key to ensuring the company is in a strong position to be able to deliver world-class retirement living in New Zealand.

When Blackstone purchased Lend Lease’s 5 retirement villages in 2016, the intention was to create a standalone New Zealand-based business committed to delivering world-class senior living. We have transformed the management of the 5 original villages, alongside a continual programme of investment & improvements.

“Our first major milestone was the introduction of a fixed-for-life levy in July 2017. This transition to a fixed levy has given our residents a greater level of financial certainty and removed the worry of increasing costs of living. The new levy was approved by 98.9% of residents across all 5 villages, which is an overwhelming majority. And the feedback we have received to date across all aspects of village life has been very positive.

“Our goal is always to enable our residents to relax & enjoy their lives, while we take care of the rest.”

Before returning to New Zealand from the UK to head Arena Living, Mr Davis was chief executive of LifeCare Residences UK and board chair of the Associated Retirement Community Operators. He’s previously held senior roles at Metlifecare in New Zealand.

“Our industry is growing rapidly as Kiwis live longer and seek an environment where they can enjoy independent living, friendship, freedom & privacy. Arena’s point of difference is our focus on high quality, and we’ll continue to look for opportunities that help us meet the strong demand for quality lifestyle options.”

Link: Mt Eden Gardens

Earlier story:
17 February 2016: Blackstone buys Lendlease’s NZ retirement villages

Attribution: Company release.

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Council votes Thursday on Selwyn partnership for old folks’ housing

Auckland Council’s governing body will vote on Thursday to enter a long-term partnership with the Selwyn Foundation for the management & operation of the council’s Housing for Older People (HfOP) service.

The council would hold 49% and the foundation 51% in a limited partnership. The joint venture would register as a class 1 landlord and become a community housing provider eligible to receive income-related rent subsidy funding.

Council-controlled Development Auckland Ltd (Panuku) would be delegated the task of implementing the council’s high level project plan.

The council has already resolved to establish a partnership to deliver these services, has agreed a series of objectives and has been working with Selwyn to progress business planning for the partnership.

The council has 1412 units at 62 sites in the north, south & west of the region, covering a total 26ha. Those housing assets will be leased to the joint venture for an initial period of 25 years at a peppercorn rent – with 3 rights of renewal, each for 25 years. The council will retain ownership of the portfolio land, subject to any proposed redevelopment & portfolio rationalisation.

Under the partnership proposal, the council will make financial provision in its 2017-18 annual plan & 2018-28 long-term plan to transfer budgeted funds to the joint venture for capital renewals and the establishment of a $20 million development funding facility, which Panuku would administered to support development & growth of the portfolio.

The council & Selwyn expect to have their joint venture operating by next March, though the council might continue to provide some services & contracts for a further interim period.

The council has set objectives to maintain at least the current level of housing for older people – the figure is at least 1452 units – and to increase the total number of units, subject to the availability of additional funding. It’s also set objectives to improve the quality of the current stock and, through intensification, to seek opportunities to help grow social housing.

The council agreed in June last year to seek partners to deliver the housing for older people services and endorsed Selwyn as its preferred partner in December. That model was assessed against retaining the status quo or selling or gifting the council portfolio to a community housing provider.

The medium- to long-term strategy is to develop sites identified for intensification. Need is expected to remain high in central Auckland and the outlying local board areas of Rodney, Hibiscus & Bays, Upper Harbour, Henderson-Massey, Howick, Manurewa, Papakura & Franklin.

Design features established in the model include:

  • an average size of about 45m2 for new units
  • up to 20% provision for couple units
  • apartment buildings with a maximum of 10 units/floor, a double-loaded corridor & a communal landing area
  • design for a maximum of 40 residents/block with parking, outdoor area & communal space (except for villages of fewer than 15 apartments)
  • tenant parking ratio of no less than 1:3 units, and
  • secure scooter parking near the front door.

The business planning has included an ongoing commitment to active & productive engagement and development of a working relationship with Maori, including mana whenua iwi & hapu and Maori residents & ratepayers.

The joint venture will have a role in giving effect to outcomes directed by the council’s Maori responsiveness framework, which includes recognition & protection of Maori rights & interests within Tamaki Makaurau and contributing to the needs & aspirations of Maori.

Council governing body agenda item & related documents, 25 August 2016:
11, Housing for older people: Partnership for the management & operation of the housing for older people service and adoption of the high level project plan
Council HfOP objectives June 2015
Proposed HfOP parnership structure
HfOP portfolio
HfOP strategic business case
HfOP HLPP version for council
HfOP design brief

Selwyn Foundation

Attribution: Council agenda.

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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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Senior Trust fund approves second retirement village loan

The NZX-listed Senior Trust Retirement Village Listed Fund said yesterday it had committed to making a first mortgage advance for expansion of the Palm Grove retirement village at Orewa, owned & operated by David & Verla Dawick.

Trust management company director Scott Lester said Senior Trust Capital Ltd, an associated entity, would provide up to $17 million of debt funding, and the interest rate on the loan would support the fund achieving its targeted distribution rate of 6% before tax.

The first retirement village loan by the newly listed fund was to Whitby Village (2009) Ltd, Wellington. The fund limits loans to a maximum of 60% of the independently determined valuation of the retirement village or aged-care facility.

Attribution: Trust release.

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Propbd on Q Th25Jun15 – Barfoot auction results, Swney jailed, quake-prone buildings law, city rail link start, Arvida buys

Wide array of units sell at Barfoots
Swney jailed for 5 years 7 months
Select committee seeks feedback on quake-prone buildings bill changes
First rail project works to start in October
Arvida buys Aria Villages

Also this morning: I’ll be reporting on progress at the Town Hall meeting of Auckland Council’s governing body, where the rates for the next year and the 10-year budget are up in the air.

Wide array of units sell at Barfoots

7 apartments & townhouses, 2 units on cross-leases, 3 units sold prior, another 3 in a package, an Ellerslie commercial property and a Panmure section sold at $943/m² were among the still-heavy lineup of residential properties sold at Barfoot & Thompson’s auction yesterday. Auction results:

Grey Lynn, 3 Millais St, sold for $1.95 million, Jill Jackson & Emma John
47 Wakefield St, unit 504, sold for $185,000, Aaron Cook & Betty Shao
Glendowie, 119 Riddell Rd, unit 2, sold for $7126,000, Kelly Midwood
SugarTree, 27 Union St, unit 713, sold for $514,000, Livia Li & Alan Guo
Tower Hill, 1 Emily Place, unit 2D, sold for $611,000, Stephen & Leo Shin
Ellerslie, 95-97 Main Highway, commercial property sold for $1.625 million, Murray Tomlinson
Panmure, 109 Pilkington Rd, 880m² section with cottage, sold for $830,000 at $943/m² land, Rain Diao
Argent Hall, 2 Eden Crescent, unit 13E, $280,000 offer made at pre-auction, sold for $311,000, Stephen & Leo Shin
Remuera, 674 Remuera Rd, unit 2, sold prior, Dennis Dunford & Kathy Bower
207 Federal St, unit 1210, sold prior, Stephen & Leo Shin
St Heliers, 22 Devore St, unit 2, sold prior, Karin Cooper
Pt Chevalier, 1038 & 1040 Great North Rd, units 1, 2 & 3, sold for $2.575 million, Heather Hannah & Dee Huxtable
Pt Chevalier, 357 Pt Chevalier Rd, unit 3, cross-lease, sold for $789,000, Rosemary Giborees
Birkdale, 8 Flynn St, unit 10, sold for $457,000, Kevin He & Zoe Zhou
Mt Albert, 14 Seaview Terrace, unit 2, cross-lease, sold for $587,000, Kim Tilly & Jo van Kan

Swney jailed for 5 years 7 months

Former Heart of the City chief executive Alex Swney (57) was sentenced to 5 years 7 months in jail yesterday on a representative charge of dishonestly using a document and tax charges.

has appeared in the Auckland District Court today. Mr Swney has been sentenced to five years and seven months’ imprisonment for charges brought respectively by

The Serious Fraud Office charged Mr Swney in April with the representative Crimes Act charge of dishonestly using documents to obtain $2.5 million. He pleaded guilty at his first appearance, admitting that while at Heart of the City he created fictitious invoices which, when submitted, resulted in payments into accounts controlled by him.

The Inland Revenue charges were in relation to unpaid tax of about $1.8 million plus penalties & interest.

Other stories this morning:
Select committee seeks feedback on quake-prone buildings bill changes
First rail project works to start in October
Arvida buys Aria Villages

Attribution: Auction, SFO.

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Arvida buys Aria Villages

Newly NZX-listed retirement village operator Arvida Group Ltd has conditionally bought the Aria Villages in Auckland for $62 million.

Arvida is raising up to $41 million of new equity through the issue of $6 million of Arvida shares to Aria Villages vendor shareholders, which will be subject to the same escrow arrangements as shareholders under Arvida’s IPO, and a $30 million underwritten placement at 84c/share.

The placement will be followed by a share purchase plan, up to a maximum of $5 million. The balance of the acquisition will be funded under Arvida’s existing debt facility.

The price represents an equity value:2016 financial year underlying profit multiple of 8.4x. Arvida expects the acquisition & associated equity raising to be dividend- & value-enhancing to Arvida shareholders, with 12% earnings/share accretion to Arvida’s 2016 financial year underlying profit on a pro forma basis.

Arvida chief executive Bill McDonald said the 3 villages had a strong care focus, 97% occupancy & brownfield development opportunities.

The 3 villages are Aria Bay in Browns Bay, Aria Park in Epsom & Aria Gardens at Albany, which have a total 350 residents. Mr McDonald said Arvida expected earnings improvement following the completion of new beds at Aria Gardens, selldown of newly completed apartments at Aria Bay and possible developments at Aria Bay.

Completion of the acquisition is anticipated in July. It’s conditional on statutory supervisor consents and obtaining district health board & Ministry of Health approvals.

Attribution: Company release.

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JLL paper shows retirement villages’ market penetration rising

Research by JLL shows 12 new retirement villages were built in New Zealand last year, and an average 13.6/year would be needed to meet demand over the next 30 years.

A simple demand model, based on Statistics NZ’s February 2015 median population projections, showed a penetration rate of 12% and an average new village size of 150 units, indicating a demand for 13.6 villages/year, economist & research consultant Angela Webster and health & aged care valuer Matt Straka said in JLL’s third annual paper on the sector.

They identified 363 villages operating at the end of 2014, containing 25,272 units. That was up 1124 units (4.7% in a year). Total resident numbers rose by 5567 (20.4%) to 32,854, and the occupancy rate rose from 1.13 to 1.30 residents/unit. The 10,236 retirement village occupants in Auckland made up 31.2% of the total.

An important factor for development of villages is the penetration rate in the age groups 65+ & 75+ – the number of people in those age groups living in a retirement village.

The Bay of Plenty remains the leader – a penetration rate of 5.6% for the younger group and 17.5% for the older. Auckland’s penetration rates at the end of last were 5.8% for the younger group, 14.1% for the older. Nationally, the 2 rates were 5.1% & 12%.

The research showed a 1.5% increase nationally last year in the older age group living in villages, driving up demand forecasts & development potential.

At an overall 12% rate, the researchers estimated from Statistics NZ’s population figures that demand in the older age group would rise by 120% over 20 years, from 38,000 residents in 2018 to 83,750 in 2038. But a 14% penetration rate would add 7600 potential customers in the 75+ group.

The researchers said there was a development pipeline of 11,936 units at the end of last year, 43% to be added to existing village, 57% in new developments, and the equivalent of 80 villages of 150 occupants each.

The Auckland pipeline rose by 1% to 38% of the total – 4560 units.

The sector is dominated by listed companies, with another one, Arvida Group Ltd, joining the NZX in November. It has 800 retirement village units, mostly around Christchurch, and 17 retirement villages & aged-care based facilities.

Ryman Healthcare Ltd was the biggest operator with 4305 units in 27 villages & 17% market share, followed by Metlifecare Ltd (3928 units, 24 villages, 16% market share) and Summerset Group Holdings Ltd (1926 units, 19 villages, 8% market share).

Link: JLL retirement village paper

Attribution: JLL paper.

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Metlifecare buys 5ha of Red Beach golfcourse for new retirement village

Metlifecare Ltd has conditionally bought 5ha of the Peninsula golfcourse for its second retirement village at Red Beach.

The golf club has sold the 45ha Red Beach course for residential subdivision and is moving to a new course at Wainui.

Metlifecare chief executive Alan Edwards said today the company planned a $150 million project on its 5ha, subject to due diligence (including feasibility) and obtaining resource consent, and the vendor obtaining subdivision consent.

Assuming satisfaction of these conditions and of related consents, Mr Edwards said the company expected to have resource consent by December, enabling development of the site to start in 2017. It would be Metlifecare’s 15th Auckland village and 26th nationally.

Metlifecare bought its first Red Beach village, Hibiscus Coast Village, in 2011 from Retirement Villages Group Ltd. It’s on a 6ha site at the corner of Whangaparaoa Rd & Red Beach Rd. The new village would be across the old golfcourse on the Hibiscus Coast Highway, over the road from the 3000-house Millwater subdivision.

A third, 27-unit village on this large block at the start of the Whangaparaoa Peninsula, Northhaven, is owned by Bupa Care Services NZ Ltd, which also owns the adjoining Northhaven Care Home.

Mr Edwards said Metlifecare’s new village would contain a range of one-, 2- & 3-bedroom independent living options & care beds. The community facilities would include a swimming pool, gym, café & bowling green.

“Importantly, the acquisition supports growth in Metlifecare’s development pipeline. The pipeline will comprise in excess of 1350 units & beds, depending on the final design & consenting process for the new Red Beach village.

Attribution: Company release.

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Summerset lifts sales by 48% from year ago

Summerset Group Holdings Ltd lifted December-quarter retirement village sales by 48% over a year earlier, achieving 164 sales of occupation rights.

The 113 new sales in the quarter were up 66% on the previous record of 68 new sales, achieved in the September quarter. The 51 resales were the highest quarterly result in 2014. Unsold resale stock at 31 December remained low at 26 retirement units.

Chief executive Julian Cook said 4 new villages contributed to the new sales results in the second half of 2014, with openings in Karaka, Hobsonville, New Plymouth & the Trentham extension.

“Sales momentum for new retirement units over the first quarter of 2015 remains strong, though we do not expect the sales outcome to be at the levels seen this quarter due to the timing of new village openings.”

Summerset sold a total 458 occupancy rights during the year, 286 new & 172 resales, up from a total 402 in 2013 (228 new, 174 resales).

Summerset is the third largest operator, and second largest developer of retirement villages in New Zealand. It owns 19 villages and has 4 development sites (Casebrook, Ellerslie, Lower Hutt & Wigram).

Attribution: Company release.

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