The retired village operator Arvida increases its construction program to 600 million dollars and doubles its profit

The Arvida group, one of the largest operators of retirement villages, is currently scaling up its construction program, which is expected to cost up to $ 600 million over the next seven years.

The company, which has 29 villages and some 4,000 inhabitants, has just announced a profit of $ 30.5 million over six months of operation, from April to the end of September.

This represents a little more than double the profits made in six months from April to September 2017.

This year, the company is in the process of creating 112 new retirement units.

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* Arvida buys three retirement villages in Auckland for $ 62 million
* A woman in her 90s forces a heavy door to open while the fire alarm of the retirement village rings

It plans to provide an additional 140 units and long-term care beds by the year through March 2020. The goal is to build 200 units per year and 250 units the following year.

Overall, it plans to build nearly 1,400 units and care beds in five to seven years.

Chief Financial Officer Jeremy Nicoll said the construction program until 2025 would cost between $ 500 and $ 600 million.

Arvida now has 1909 retirement units and 1743 care beds.

Regarding constraints in the construction sector and their effects on the company's construction plans, General Manager Bill McDonald said the constraints were particularly in Auckland.

Several months ago, Arvida had employed a team of about six people who previously worked for Fletcher Construction in Plenty Bay.

They formed a project management team responsible for construction projects in Arvida and included project managers, health and safety and quality assurance staff.

They managed the contracts with the subcontractors rather than Arvida being forced to hire a prime contractor to do it, McDonald said.

It worked very well, he said.

In August, Arvida purchased an 18-hectare site in Kerikeri, Northland, which will enable it to develop 200 units and 80 care beds. He is preparing to file on the site an application for consent regarding the resources of a retiree village.

The company was created five years ago and included 18 retirement villages. Since then, others have been bought. The company was listed on the New Zealand Stock Exchange at the end of 2014.

According to McDonald, the completion of the first stage of the Park Lane apartments in Addington, Christchurch, was a milestone in the six months to the end of September.

This was the first of his major apartment projects, different from traditional retirement villages, and represented a "blueprint" of how society wanted to grow.

Instead of car parks, a group of electric vehicles was provided to the residents.

The development of Park Lane and others would include "outdoor" community facilities, such as a gym and café, a pool and some could have a nursery for children staff that members of the public could also use.

The building was designed by leading architects Jazmax and incorporates a new technology in wood, such as glulam. The one-to-three bedroom apartments were very modern on four floors (including the ground floor).

Occupancy permit prices ranged from $ 450,000 to $ 850,000. The second stage of Park Lane would include 50 other apartments.

The initial strategy of the company had been to develop and add to the existing retirement villages it was doing.

She was now planning "creative projects" in Richmond, near Nelson and Kerikeri.

In Richmond, Arvida had completed earthworks for the first stage of development and construction was to begin at the beginning of the new year.

The retiree's village would be phased over three to four years and would probably have about 200 units, combining self-contained apartments and serviced apartments or care suites, and 80 care beds.

The company was looking for more land for the development of new facilities, McDonald said.

Several years ago, about 7 to 8% of people over 75 lived in retirement villages and rest homes, which now represents about 13%.

McDonald added that Arvida had used Statistics New Zealand's demographic data and CBRE research, industry specialists, to inform its development plans.