New Zealand retirement village operators continue to demonstrate that they have a successful business model – new stock exchange highs while Summerset commits to a new $100 million village

NZ stockbroker Hamilton Hindin Greene describe retirement village operator Ryman as the “perennial market darling” because of its unbroken profit growth, including 62% in the past 12 months. Other listed village operators including Summerset and Metlifecare are equally lauded. Demonstrating the strength, Summerset has just committed to build a $100 million village [with care] in Lower Hutt. No operator in Australia is investing $100 million in a village at present.

Interestingly, one of the largest investors in Summerset [with a board position] is Australian private equity firm, Quadrant. The Quadrant investors are predominantly the institutional funds that won’t touch retirement villages here, such as Statewide Superannuation Trust, Unisuper, AustralianSuper, Unisuper, Telstra Super and Macquarie Private Equity Group.