Summerset talks up $60m retirement village spend

Summerset plans to build almost $60m worth of new retirement villages this year. Photo / Supplied

Newly-listed retirement village operator and developer Summerset said it planned almost $60 million worth of new developments for this year.

Chief executive Norah Barlow told the company's annual meeting in Wellington that new building activity would take place in Summerset villages in Hamilton, Hastings, Nelson and Warkworth.

Barlow said Summerset had accelerated activity at its developing villages and that it was on track to meet its target of 155 new units in 2012.

Chairman Rob Campbell told the annual meeting - the company's first since listing last year - that it was trading in line with its forecasts.

Early this month, Summerset said it had bought a 7.6ha waterfront property in Hobsonville, Auckland, known as Monterey Park, where it intends to build a retirement village.

Summerset is majority-owned by Australian private equity investor Quadrant.

The company reported a net profit after tax of $4.3m for 2011, down from its prospectus forecast of $5m - a gap the company said was due to non-cash accounting adjustments.

Summerset's "underlying" net profit was $8.1m, compared with its IPO forecast of $6m.

Its shares last traded at $1.63, compared with last year's issue price of $1.40.