Fletcher expands into aged living
Fletcher Building is expanding into the retirement village business, where growth is surging to cater for the country’s ageing population.
The construction and building supplies firm announced yesterday it is launching retirement living brand Vivid Living, where it will partner with Private Care NZ, a subsidiary of New Zealand Health Group and one of the country’s largest inhome healthcare providers.
Fletcher is developing its first villages within the Fletcher Living communities of Waiata Shores and Red Beach in Auckland, which will be available for people to view and buy from March next year.
Retirement villages are growing rapidly to cater for an ageing population with a recent report by property company Jones Lang LaSalle showing about 11,000 units were being built across the country, with a further 15,000 needed to meet forecast demand by 2033.
Fletcher will be entering a market with big established players such as Ryman Healthcare, Summerset and Metlifecare, and newer players such as Oceania Healthcare and Arvida.
Vivid Living is targeted at residents aged 70 and older who want to live in an independent home supported by home healthcare, which can be tailored to their needs and would be paid for separately.
Fletcher said its offer would differ from most traditional retirement living offers by being designed as an integrated part of the surrounding community, rather than in isolation from it.
Retirement villages have been criticised for their financial structure with most village owners selling residents a right to occupy, and retaining any capital gains when the units are resold.
Fletcher said its system would be fairer, with residents entering an occupational rights agreement with a 15 per cent deferred management fee, lower than most traditional villages.
Residents would also share half of the capital gains, less the cost of refurbishment, from a sale, it said.
‘‘People work really hard to build up their retirement nest egg, and they rightly want to balance protecting this with enjoying their non-working years,’’ said Steve Evans, chief executive of Fletcher’s residential and development unit
‘‘Understanding this, and knowing people considering retirement living want to be supported by the right level of care while being surrounded by like-minded people became key drivers for us, as we developed our offer.’’
Fletcher Retirement, trading as Vivid Living, is undergoing
statutory supervisor due diligence and will apply for registration under the Retirement Village Act.
The company plans to build 27 single level villas at Waiata Shores and 48 single level villas at Red Beach, and a shared lounge, with ongoing maintenance provided by Fletcher Living.
Shares in Fletcher Building advanced 0.3 per cent to $6.97 in midday trading on the NZX, and have gained 23 per cent so far this year.