New Zealand retirement village developer & operator Summerset Group Holdings Ltd has bought 8ha in Melbourne for its first Australian village.
Chief executive Julian Cook said yesterday the company would fund the site acquisition & development from existing bank facilities. Apart from the size of the property, he didn’t put any figures on the project – the number of units, the cost or the development timeframe.
He said the site in south-eastern suburb Cranbourne North was near a number of shopping centres, a golfcourse & public transport, and would be adjacent to a public reserve with walking tracks.
Mr Cook said: “We have made clear our plans for Melbourne for some time now and believe this market is an attractive growth opportunity for us.
“Summerset will be introducing its continuum of care retirement village model to Victoria, which is not a common feature of many retirement villages there. Our research indicates that there is strong demand for this style of village.
“Village design is progressing and we plan on including a signature main building along with a number of single-level villas.”
Mr Cook noted that the Melbourne residential market was starting to recover after a period of decline: “Over the last 3 months residential prices in Melbourne have started to increase, following around 12 months where prices declined about 11%. The demand for our retirement living & aged care is not driven by the residential property market; however, the stabilisation of the residential housing market does mean we are entering the market at a good point in the property cycle.”
Summerset has 28 villages completed or in development in New Zealand and 10 sites for future villages.
Attribution: Company release.