Summerset expects unit sales to keep rising after record 2nd quarter

Thursday 7th July 2016

Summerset Group, the retirement village operator and developer, expects the opening of a new village in the Auckland suburb of Ellerslie later this year will keep sales humming after posting a record quarter in the three months through June.

The Wellington-based company lifted occupation rights sales 28 percent to 185 in the three months ended June 30, its biggest quarter since the company was founded. Of those, new sales were up 32 percent to 77 from the same quarter a year earlier, and resales rose 22 percent to 77.

"Our combined new sales and resales for Q2 were the most we have ever achieved in a quarter, which has contributed to a record number of first-half total sales," chief executive Julian Cook said in a statement. "The past six months has seen good growth for Summerset and we expect this to continue strongly as the first stage of our Ellerslie village opens in September."

Like other retirement village developers, Summerset has been on a drive to expand its national footprint to cash in on the ageing 'baby boomer' generation. Government data show 771 building permits were issued for new retirement units in the first five months of 2016, up from 594 over the same period a year earlier and 603 in 2014.

Summerset's Cook has previously said he wants to double its size over the next six years. The company has 21 villages and six more under development.

The shares last traded at $4.56 and have gained 12 percent so far this year.

BusinessDesk.co.nz

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