Lively AGM for Metlifecare

Alan Edwards says Auckland, the Bay of Plenty and Hamilton are a golden triangle and the company's target areas. Picture / Natalie Slade

Chief executive answers questions on everything from rates of employee pay to rival’s fees

The spectre of a retirement village unit oversupply, high rates of new development in Auckland and deferred management fees higher than those charged by a rival were issues raised yesterday at Metlifecare's annual meeting.

Shareholder John Boscawen asked how the company could charge a 30 per cent deferred management fee - residents lose that after three years when their place is sold - when Ryman Healthcare only charged 20 per cent.

He also asked if the board was worried about Ryman Healthcare developing its vast new Tropicana village in New Lynn where Metlifecare was established.

But Alan Edwards, chief executive, said the business enjoyed good village occupancies and older people were extremely discerning when they investigated where to live.

Other shareholders asked about the possibility of an oversupply and Edwards agreed new village development was extensive but said Metlifecare understood who it competed against. Boscawen also asked why Metlifecare had not bought any new sites in the last two years but Edwards said the company had a number of opportunities. "But the timing is just not right, right now to tell you more about that," he said.

Alistair Duncan of the Service and Food Workers' Union complained of low wages for retirement village workers and Metlifecare paying $2/hour under the living wage. Skilled workers earned $16.40/hour when the living wage was $18.80/hour, he said, yet Metlifecare paid more than some of its competitors.

"Most Metlife caregivers earn $2/hour less than the living wage and that's not the standard we [are] wanting," Duncan said.

Chairman Kim Ellis said he knew the issue would be raised and the board was examining it. Edwards afterwards confirmed the figures. "That's more or less correct. We don't peg any direct relationship to the living wage. We don't see that as a benchmark but we are reviewing our remuneration structures within the organisation," Edwards said. That review is due to be completed early next year.

Union members and Metlifecare workers with 50 years experience - Alofa Farani from the Powley village in Blockhouse Bay, Morven Hughes from Pinesong in Titirangi and Bernadine Hobson from Crestwood in New Lynn - told shareholders of their roles.

A question was also asked about whether there was enough hospital care but Edwards said the business could provide extensive in-home services for residents, for medication, personal hygiene and food services.

Edwards said Auckland, the Bay of Plenty and Hamilton were a golden triangle and the company's target areas. The business had 23 villages in the North Island but is building two new Auckland villages: construction of the $40 million The Orchards is under way at Glenfield and resource consent has been granted for the new $160 million Greenwich Gardens at Unsworth Heights, also on the North Shore where the company is developing 75 villas, 235 apartments and a 48-bed hospital on the site where 53,000 cubic metres of soil has been removed.

The third stage of The Poynton has been completed and construction of stage four was under way, bringing an extra 117 new apartments to that site near the North Shore Hospital.

"Our development pipeline is currently 1058 additional units and care beds of which 202 are currently under construction," he said, telling of a target to deliver more than 200 units (villas, apartments and hospital/rest home beds) annually. Shares closed up 8c yesterday at $4.38.

Metlifecare
1058
new units and hospital beds in the development pipeline
200+
units and beds to be developed annually.
$2b+
asset base
5000+
residents in 23 villages.
2
new villages being built on the North Shore.
202
units now under construction.
[Source: Metlifecare AGM presentation, October 22]