Archive | Ryman Healthcare

Ryman to turn Karori campus into retirement village

Ryman Healthcare Ltd said yesterday it planned to convert a landmark Wellington site into a new retirement village.

Ryman, New Zealand’s largest retirement village operator, has bought Victoria University of Wellington’s former Karori campus, which will be converted into a retirement village with independent & serviced apartments & a care centre.

Group development manager Andrew Mitchell said: “It is an iconic site in the city’s largest suburb, and we’re pleased it will continue to be a significant community asset for the city.”

Victoria’s vice-chancellor, Professor Grant Guilford, was also pleased with the outcome: “We have listened to a wide range of varying views about what should happen to our former campus. The divestment process has provided all parties, whether they are public, community or private, to put forward the most practical, beneficial & realisable options for future use of the campus land & buildings. On balance, we believe Ryman Healthcare has the community focus, professionalism, experience & resources to make the best use of the campus land & buildings.”

The university built the Karori campus to cope with the large numbers of ‘baby boomers’ in tertiary education in the 1960s.

Ryman already owns & operates 5 retirement villages in the Wellington region which are home to over 1750 retirees. It has 31 retirement villages in New Zealand & Australia.

Attribution: Company release.

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Ryman plans retirement village for Lincoln Rd

Ryman Healthcare Ltd announced plans on Friday for a new retirement village on a 4.5ha Lincoln Rd site in Henderson.

The land is part of Laidlaw College’s Henderson campus, but is surplus to the college’s needs. Laidlaw College is an evangelical theological college, formerly the Bible College of NZ.

Laidlaw College Foundation chair Graham Burt said: “Ryman is an ideal organisation to become our new neighbour. We feel very much part of the Henderson area having been here for over 50 years and we’re keen to ensure a good fit for both ourselves & the community as a whole.’’

Ryman Healthcare group development manager Andrew Mitchell said the company intended to redevelop the site as a resort-style retirement village which would be home to over 400 residents.

The village would offer independent retirement housing, a full range of aged care services including serviced apartments, and resthome, hospital & dementia care.

Ryman group sales & community relations manager Debbie McClure said the village would be named in honour of a West Auckland local and suggestions were welcome.

The village will be Ryman’s 11th in Auckland. The company is developing villages at Hobsonville, Greenlane, Lynfield & Devonport and has existing villages in St Heliers, Remuera, Howick, Pukekohe, Birkenhead & Orewa.

Attribution: Company release.

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Occupancy right sales lift Ryman

Ryman Healthcare Ltd said on Friday strong gains from the resale of occupancy rights drove its rising profits, as the company invested $525 million to meet demand.

Its underlying profit rose 13% to $178 million in the year to March, while valuation gains lifted audited reported profit after tax by 17% to $357 million. Total assets grew 24% to $4.9 billion.

The 9.3c/share final dividend lifts the total for the year by 13% to 17.8c/share, in line with the increase in underlying profit.

Ryman received consent during the year for 3 new villages with a combined value over $1 billion – Brandon Park in Melbourne, and Devonport & Tropicana in Auckland.

Ryman’s established villages ended the year with care centre occupancy at 97%, and only 32 of the 6000 units in its portfolio of townhouses, apartments & serviced apartments were available.

The company has increased its land bank by over 30% and now has 13 new villages in the pipeline in Australia & New Zealand.

Chair Dr David Kerr said the annual result was satisfactory given that 4 new villages were in the establishment phase during the year, and there was no development contribution from Melbourne.

“We are confident demand for our villages will continue to grow,” he said. “Our villages meet a real & growing need in the community, and remain affordable for residents to move in and free up capital.

“Our target is to open 5 villages in Melbourne by 2020. In the medium-term our goal is to be opening 4 new villages/year – 2 in New Zealand & 2 in Melbourne.”

Ryman has delivered 15 consecutive years of underlying profit & dividend growth. Dr Kerr said Ryman’s medium-term target remained to grow underlying profits & dividends by 15%/year, which means the company doubles profits & dividends every 5 years.

Annual result figures:

  • Underlying profit up 13% to $178.3 million ($157.7 million last year)
  • Total operating revenue up 10.8% to $289.2 million ($261.1 million)
  • Fair value movement of investment properties up 18.3% to $325 million ($274.6 million)
  • Total income up 14.6% to $614.2 million ($535.7 million)
  • Pretax net profit up 17.3% to $363 million ($309.3 million)
  • Net profit attributable to shareholders up 16.8% to $356.7 million ($305.4 million)
  • Earnings/share (basic & diluted) up 16.8% to 71.3c (61.1c)
  • Total portfolio 9249 units (8468)
  • New builds 781 units (869)
  • New sales, gross development margin (24% (28%)
  • Resales, gross margin 25% (22%)

Illness forces Challies to stand down

Simon Challies.

Managing director Simon Challies announced that he would stand down on 30 June for health reasons, but will continue as an advisor to the board until December 2018. He was diagnosed with Parkinson’s disease in 2011.

Deputy chief executive & chief financial officer Gordon MacLeod will take over as chief executive, and David Bennett, who joined Ryman 4 years ago as financial controller, will move up to chief financial officer.

Mr Challies joined the company as chief financial officer in 1999 and took over as chief executive in 2006 from Ryman cofounder Kevin Hickman. During his tenure, the portfolio of villages has grown from 12 to 31.

Mr MacLeod joined Ryman as chief financial officer 10 years ago and was promoted to deputy chief executive in 2014.

Mr Challies said of his illness on Friday: “I first noticed the symptoms about a decade ago, but it was still a huge shock to get my diagnosis in 2011. I’ve been determined not to let it beat me. This is a demanding job, and I’ve realised this year that my health was deteriorating and it was taking too great a toll on me personally, and on my family.

“I’m a great optimist and I think having Parkinson’s has made me a better MD of a healthcare company than I otherwise might have been. It has certainly me a degree of empathy & insight into the challenges our residents face, and it has taught me to make every day count. I’m sad to be leaving Ryman, but I’m looking forward to spending more time with my family and being able to contribute to the community in other ways.”

Attribution: Company release, accounts.

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Ryman unveils plan for 6th Australian village

Ryman Healthcare Ltd announced its intention on Monday to build its 6th Australian retirement village, an $A100 million development in Geelong, 75km down toward the mouth of Port Phillip Bay from central Melbourne.

The 3.2ha village on South Valley Rd in the Geelong suburb of Highton will offer a range of retirement living options as well as aged & specialist dementia care.

Development manager Andrew Mitchell said Geelong, Victoria’s second biggest city, had been on the company’s radar for some time. He said Ryman would consult locals before submitting plans for the village.

Attribution: Company release.

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Mediation agreement signed for Ryman’s Devonport village

Ryman Healthcare Ltd said on Friday its new Devonport village was set to proceed following mediation talks with objectors.

The Devonport Peninsula Precincts Society appealed against the development to the Environment Court after Auckland Council planning commissioners granted resource consent in January for the village on Ngataringa Rd.

Ryman, the society, the NZ Institute of Architects & Urban Auckland have since been in mediation over the retirement village plans for the 4.2ha site owned by Ngati Whatua Orakei.

Ryman development manager Andrew Mitchell said differences were resolved amicably and all parties had signed an agreement. The resolution requires final approval from the Environment Court.

The 6 buildings of the proposed village were up to 6 storeys high, and Devonport residents opposed bulk & height. The parties haven’t disclosed changes to height or design, or how the increased traffic on Lake Rd will be dealt with.

It’s the first largescale consent on the North Shore considered under Auckland’s new unitary plan, and the society said on its website the factors opponents raised would remain relevant for the other largescale development sites (see map above).

Link: Devonport Peninsula Precincts Society

Attribution: Company release, society website.

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Ryman starts work on second Melbourne village, 3 more in pipeline

Ryman Healthcare Ltd was given the all-clear this week to start work on its second retirement village in Melbourne.

The City of Monash approved the New Zealand listed company’s plan to build a village at Brandon Park.

Ryman managing director Simon Challies said the company’s construction team would start preliminary work on the village after Monash councillors approved plans on Tuesday to build on a vacant 5.6ha site next to the Brandon Park shopping centre.

The village will include 199 aged-care rooms, 94 serviced apartments & 328 independent 2- & 3-bedroomed apartments. Other amenities include an indoor swimming pool, movie theatre, café, hair & beauty salons & a bowling green. First residents are expected to move into their new apartments in 2018, and the village will eventually be home to more than 700 retirees.

Ryman’s first Melbourne village, opened in 2014, was named after Sir Edward Weary Dunlop, the surgeon who worked to keep prisoners of war alive on the Burma Railway during the Second World War. The company doesn’t have a name yet for the second village.

It has 3 other sites in Melbourne designated for retirement villages:

  • Burwood East:5ha on Middleborough Rd, part of a large $A500 million Frasers Property Australia redevelopment of the wider 20.5ha site. Design work is well under way for the village, which Mr Challies said would be a cornerstone of one of Melbourne’s largest urban redevelopment projects
  • Coburg:2ha, 10km from Melbourne’s cbd, was a school and had been approved for an 11-storey residential development
  • Moondah Estate, Mt Eliza:9ha, 45 minutes from Melbourne’s cbd, built as a country estate in 1888 and most recently used as a Melbourne Business School campus.

Ryman owns & operates 31 retirement villages in New Zealand & Australia.

Attribution: Company release.

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Ryman buys site for 5th Melbourne retirement village

Ryman Healthcare Ltd has bought its fifth site in Melbourne for a $200 million retirement village.

The New Zealand company said it would consult locals before applying for consent to build a village on the 1.2ha in Coburg, 10km from Melbourne’s cbd.

Managing director Simon Challies said the site, formerly a school, was previously approved for a large residential development.

Attribution: Company release.

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Ryman buys waterfront Melbourne site

NZX-listed retirement village company Ryman Healthcare Ltd has continued its Melbourne expansion, buying an 8.9ha waterfront site on the Mornington Peninsula for an undisclosed price.

The Moondah Estate site at Mt Eliza, overlooking Port Phillip Bay, is 45 minutes from Melbourne’s cbd and was built as a country estate by James Grice in 1888. It was later owned by airline founder Sir Reg Ansett, who turned it into a luxury hotel, but its last use was as a campus for the Melbourne Business School.

Ryman opened its first retirement village in Melbourne in 2014 and Moondah Estate is its fourth site in Australia.

Ryman managing director Simon Challies said yesterday the company would preserve its historic features: “This is an outstanding site in terms of its natural beauty and it is going to make an absolutely stunning place to live for retirees who love the peninsula. We think it has great potential and we are also conscious that ownership of such an historic site is also a privilege. It will be great to see Moondah Estate get a new lease on life as a beautiful home for retirees.’’

Ryman’s integrated care model differs from most Australian retirement villages and the Mt Eliza village will include independent living apartments & aged care, including specialist dementia care.

Mr Challies said: “We think our first village was a great success because Melburnians like the way our integrated model works. We don’t think it is good enough to sell someone a home and then ask them to move on when their health changes. It is early days, but we believe this market acceptance, and the ageing population, provides us with a great opportunity to provide homes & care as well as sustainable jobs.’’

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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Ryman sets another profit record and talks of new growth era

Ryman Healthcare Ltd grew its underlying profit for the March year by 16% to a record $158 million, and said it was entering a new era of growth.

Reported profit after tax rose 26% to $305 million (the NZ IFRS measure), as new stock & the strong housing market led to valuation gains.

Operating cashflows grew 34% to $312 million, driving a record level of investment in new villages & innovations.

Dividends have been increased by 16%. The final dividend is 8.5c/share.

Ryman chair David Kerr said on the release of the annual results on Friday: “Good profits & cashflows mean we have been able to invest $369 million back into the business.’’

One innovation was the first phase of Ryman’s new homegrown tablet-based nursing app, which will eliminate paperwork and allow nursing staff to spend more time with residents. Dr Kerr said ‘myRyman’ had already won a Microsoft award and was seen as a gamechanger for clinical staff & residents.

The company owns & operates 27 retirement villages in New Zealand & Australia, has 3 more where the first residents have started moving in and 9 under construction or at the consent or design stage.

Dr Kerr said Ryman was working on securing its fourth & fifth sites in Melbourne, putting the company on track to have 5 villages open in Victoria by 2020.

The first Melbourne village was completed & sold out during the year, and construction of the second village at Brandon Park is expected to start within 6 months.

“Returns from our first investment in Melbourne have been better than we expected. Looking out past 2020, our long-term plan is to match our New Zealand build rate in Australia.’’

Ryman ended the year with 98% occupancy in its care centres, which Dr Kerr said was well above the industry average.

Total assets grew 20% to almost $4 billion.

“We’ve achieved most of our targets for the year and we have invested heavily in innovation to make sure we are getting better as well as getting bigger. We will continue to invest heavily in tomorrow’s Ryman, creating a brighter future for residents, staff & shareholders.’’

5 villages under construction:
Petone, first residents moved in, construction continuing
Pukekohe, first residents moved in, construction continuing
Rangiora, first residents moved in, construction continuing
Birkenhead, construction continuing, first residents due mid-2016
Greenlane, demolition complete, groundworks underway.

3 villages awaiting consent: Devonport; Brandon Park, Melbourne; Tropicana, Auckland.

4 villages planned, all in the design phase: Burwood East, Melbourne; Newtown, Wellington; River Rd, Hamilton, an unnamed ‘site A, NZ’.

Financial results:

  • Underlying profit up 15.7% to $157.7 million ($136.3 million last year)
  • Operating revenue up 15% to $261.1 million ($227.1 million)
  • Fair value movement of investment properties up 26.2% to $274.6 million ($217.6 million)
  • Total income up 20.5% to $535.7 million ($444.7 million)
  • Pretax net profit up 27.8% to $309.3 million ($242 million)
  • Tax on operating profit up 3358% to $3.9 million ($113,000)
    Net profit attributable to shareholders up 26.3% to $305.4 million ($241.9 million)
  • Earnings/share, basic & diluted, up 26.3% to 61.1c/share (48.4c)
  • Final dividend up 16.4% to 8.5c/share (7.3c), no imputation credit.

Attribution: Company release.

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