Kiwi operator Ryman Healthcare is cautiously entering the Australian market, only too aware of how many businesses trip up on their journey across the Tasman.

The star performer has announced that it will start building the first of its Australian retirement village portfolio in Melbourne early next year. What happens there determines the company’s future involvement in the market nationally.

Ryman’s shares jumped 51% this year on the back of record profits. The company posted a 15% gain in first half profits alone.

Managing director Simon Challies said the site in the Melbourne suburb of Wheelers Hill attracted the company because there was a shortage of aged care and retirement units.

"I think we're being very cautious because we've got a lot to learn. Just because we've been successful in New Zealand doesn't mean we can assume the same parameters apply in Australia,” he said.

"Most of the other companies with a chequered history are those who went in boots and all."

The recipe for Ryman’s growth over the last 25 years has been the development of new retirement villages.

In New Zealand, it was not common to build a retirement village with a rest home. This could become the case in Australia as well.