AMP to list retirement village unit
AMP Capital Investors has confirmed plans to float Summerset Group, one of the country's biggest retirement village businesses, on the sharemarket.
AMP said today the share offer would open in August. AMP will retain 20 per cent of Summerset and sell new and existing shares comprising 80 per cent of the company. The fund manager bought the Paraparaumu-based Summerset for $125 million in late 2005.
Summerset was set up in 1994, and its first village opened in 1997. It now has 11 villages, including ones at Trentham, near Porirua, and at Paraparaumu, and wants to own 20 villages by 2011. It had 770 units at the end of last year and plans to increase that to 2086 within four years.
Summerset chief executive Norah Barlow said this week the company had net assets worth $200 million, with a "conservative" debt level.
Brokers First NZ Capital and ABN Amro Rothschild have been appointed joint lead managers of the float.
AMP's announcement today follows a Dominion Post story on Wednesday which said AMP was looking to list Summerset. Existing listed retirement village operators include Ryman Healthcare and Metlifecare