Aussies buy up NZ retirement villages

Giant Australian-owned retirement village specialists have bought $256.1 million of assets in New Zealand, taking control of two of the largest privately owned aged-care chains.

More than 1000 retirement village units, villas and apartments have been sold in the deals which also include the transfer of substantial land holdings for future development, according to documents from the Overseas Investment Office.

The Australians say they are tapping into a growth market and they plan to expand the two chains.

Statistics New Zealand estimates that the number of people aged over 65 will grow by about 100,000 to reach 566,000 people by 2011. By 2051 there will be 1.2 million people aged over 65 and accounting for about one in four New Zealanders. About 25,000 people live in just over 300 retirement villages, mainly in the North Island.

In the first deal, the Government's Overseas Investment Office approved the sale of retirement village assets owned by New Zealand's Primecare Holdings to Australia's PrimeLiving Trust for $130.8 million. Auckland-headquartered Primecare is owned by Equity Partners, in turn owned by prominent South Island-based property developer John Darby and the Kerr Investment Trust.

In the second deal, the office cleared AMP NZ Retirement Properties to buy New Zealand's Summerset Holdings for $125.2 million.

Summerset was controlled by businessman Craig Thompson and owned and operated a portfolio of eight North Island retirement villages. Summerset has 777 units, including villas, apartments and serviced units. It also has 350 rest home and hospital beds and cares for about 1400 people.

AMP said it saw the retirement business as a growth sector and said investors demanded a diverse range of assets, hence its desire to buy the chain.

AMP and PrimeLiving promised the creation of new job opportunities in New Zealand, better services for those needing aged care and the introduction of additional investment for development purposes.


The buyers

PrimeLiving Trust
* Headquartered in Sydney, an unlisted unit trust.
* Established to specialise in retirement villages.
* ASX-listed Babcock & Brown a major shareholder.
* Buying North Island retirement villages for $130,883,000.

AMP NZ Retirement Properties
* Owned by Sydney-headquartered AMP Capital Investors.
* That buys shares, bonds, property, infrastructure and private equity.
* Buying North Island retirement villages for $125,280,000.