Media Release
24 May 2017
METLIFECARE - BOTANY SITE UNCONDITIONAL
Metlifecare Limited today announced that its acquisition of a 2.38 hectare
site at 197 Botany Road in East Auckland is now unconditional. The company
plans to invest $140 million in a new retirement village on the site, which
is adjacent to the Pakuranga Golf Course.
Chief Executive Glen Sowry said Metlifecare was looking forward to developing
the new site. "It is a fantastic location. We are looking to create a
country-club style village which provides residents with a high-quality
lifestyle in a desirable community with excellent local services and
amenities."
The new village will be mid-sized with around 160 units, including
independent living units, serviced apartments and care. Mr Sowry said: "It
will be a two-level village which is appropriate for both the area and our
target market. Our analysis tells us we can expect strong demand for such an
offering in this location, which has solid projected growth, a good
demographic profile and is underserviced by retirement living options."
"We are confident that this development will be highly value-accretive for
the company. Our initial feasibilities indicate that the average list price
for units being sold in this project will be in the high $800,000s, compared
to the average house price of $1,135,000 in the surrounding catchment area."
Mr Sowry said the land acquisition and subsequent development will be
debt-funded. "We have an exceptionally strong balance sheet, with ample
headroom to fund future development. While the company will retain a
conservative approach to managing market risk, our debt to equity ratio
demonstrates there is still significant debt capacity available."
Settlement is due on 28 July 2017. The new site will take Metlifecare''s total
portfolio to 27 villages and sites, with 17 located in the Auckland region.
ENDS
For further information please contact:
Glen Sowry
Chief Executive Officer
Mobile: 021 472 051
Metlifecare is a leading New Zealand owner and operator of retirement
villages, providing rewarding lifestyles and care to more than 5,000 New
Zealanders. Established in 1984, it currently operates 24 villages, located
primarily in high-value and high-growth regions of New Zealand''s upper North
Island.
Metlifecare is listed on the NZX and ASX (NZX: MET/ASX: MEQ). Website:
www.metlifecare.co.nz
End CA:00301634 For:MET Type:TRANSACT Time:2017-05-24 16:21:27