Metlifecare Ltd has bought 3 adjoining properties for a retirement village development at Beachlands, on the Pohutukawa Coast in Auckland’s south-east. Settlement is scheduled for August.
Chief executive Glen Sowry said the new Karaka Rd site was in an area not currently served with retirement living options: “This is one of Auckland’s growth hotspots. Significant residential intensification in the rural & coastal area from Cockle Bay through Whitford & Clevedon, and along the Pohutukawa Coast (Beachlands, Maraetai & Kawakawa Bay) has resulted in substantial & ongoing population growth. This is set to escalate further as housing development takes advantage of the new zoning opportunities opened up by the Auckland unitary plan.
“The area’s demographics are already extremely favourable with an older-than-average population, high levels of home ownership & median house prices of around $1.2 million. Additionally, the retirement-age population in our catchment area is expected to double in the next 15 years. With the closest existing villages nearly 20km away, we are very pleased to be the first retirement village provider here.”
Mr Sowry said Metlifecare planned to invest about $180 million (including care & common costs) developing the site to offer over 210 independent living units & care beds. The site is a short walk from the Pine Harbour marina & ferry terminal and opposite the Formosa golfcourse.
“From an investment perspective, we are confident that this development will be value-accretive for the company. Our analysis indicates the list price for units in this village will range from $600,000 to more than $1 million, which would enable Metlifecare to comfortably meet its development margin threshold of 15%.”
Mr Sowry said Metlifecare would start design & consenting work immediately: “The village is expected to be built over about 4 years, with site works set to commence in early 2019 and the first stage planned for completion by early 2020. Our village design provides for staging flexibility, with construction able to be accelerated according to demand.”
The new site will boost Metlifecare’s development pipeline to just under 2000 units & beds across its 24 operational villages & 5 greenfield sites. As previously signalled, the company is on track to deliver 254 new retirement units & care beds in the June 2018 year.
Hunua MP Andrew Bayly spoke in support of the purchase, while noting the need for investment in infrastructure & services to enable growing communities to thrive: “This is a special area, where Aucklanders can have a fantastic lifestyle away from the city but with many of its benefits on their doorstep.
“With the area being designated for intense future growth, I am pleased to see organisations such as Metlifecare recognising the opportunities it offers. In the past year we have seen a significant increase in the range of services, including a new Countdown supermarket, the Pohutukawa Coast shopping centre, and increased frequency & connectivity of transport options. For example, the ferry service, which is free to SuperGold card off-peak travellers, now has 20 sailings/day to Auckland’s cbd.”
Attribution: Company release.