SUM - Summerset Group

[Iolite]

I am assuming that we knew this was coming? I didn't but my research is abysmal. I can't see how it can be anything but positive.

We knew about the resource consent:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11115186

So all this announcement really confirms is that construction will commence, although they don't specify a date...

[CJ]

So all this announcement really confirms is that construction will commence, although they don't specify a date...

Unless it signals an increase in the number of units being built per year (ie. an increase in the existing build rate), then it is factored into the price already - it doesn't really matter where the new units are, as long as they are building a certain amount. From memory, they are targeting over 300 units per year.

[JayRiggs]

Could break that 3.25 resistance today.
The Karaka construction announcement is good news. A successful appeal to approve the Hobsonville site would be even better news though. That would be an increase on number of units, as CJ points out.

[MAC]

Wonder if this will shift it much?

SUMMERSET TO COMMENCE CONSTRUCTION IN KARAKA

Summerset has announced a $70 million retirement village for the Counties-Manukau area of Karaka.

The retirement village operator has been granted resource consent for the initial phase of the village, which will comprise some 125 villas, townhouses, apartments and care apartments on a 3.6ha site at Hingaia Road, Karaka. It will also offer rest home and hospital-level care. The company has a further 1.2ha adjacent to the site which would allow for further expansion subject to resource consent.

Named Summerset at Karaka, it will be the leading retirement company's 17th village. This will be Summerset's third village in the Auckland region after villages in Manukau and Warkworth, with another two land sites at Ellerslie and Hobsonville.

Seems to have done the trick, just needed a friendly reminder of growth from SUM management to move things along.

[Toasty]

$3.27. Highest ever? I don't see it going ballistic but maybe we will settle higher today?

[Mista_Trix]

Yup. The retirement sector (in terms of SP movements) seems to go in spurts AND all feed off each other (RYM, SUM & MET). I feel like we are in the middle of one of these spurts now but the SUM is lagging a bit due to the recent sell down...

Its been lagging for a while. I weighed up RYM and SUM for a while and what convinced me was the awards they have won in the sector for customer service etc. But the gains in RYM and lack there of in SUM have been quite frustrating.

[MAC]

Its been lagging for a while. I weighed up RYM and SUM for a while and what convinced me was the awards they have won in the sector for customer service etc. But the gains in RYM and lack there of in SUM have been quite frustrating.

My FA provides me with SUM as being quite undervalued at present, MET slightly overvalued now following recent gains, and RYM well overvalued as it has been for some time.

I would not be at all surprised to see some rotation within the sector now, from RYM into SUM, now the quadrant overhang is gone.

[Toasty]

I would not be at all surprised to see some rotation within the sector now, from RYM into SUM, now the quadrant overhang is gone.

I for one support your idea of substituting RYMs price for SUM. That's how I read it anyway.

[Mista_Trix]

Did we know about this already?
https://www.nzx.com/companies/SUM/announcements/243339

I've been busy with the ups of PEB and down of CNU. :-S

[MAC]

Did we know about this already?
https://www.nzx.com/companies/SUM/announcements/243339

I've been busy with the ups of PEB and down of CNU. :-S

Fantastic news to see Hobsonville released and all good to go now, can never tell what random outcomes may occur when a resource consent is held up.