Ann: GENERAL: SUM: New Auckland site and increase

• Release Date: 21/11/12 10:40
• Summary: GENERAL: SUM: New Auckland site and increased build rate announced
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SUM
21/11/2012 08:40
GENERAL

REL: 0840 HRS Summerset Group Holdings Limited

GENERAL: SUM: New Auckland site and increased build rate announced

SUMMERSET ANNOUNCES NEW AUCKLAND SITE AND INCREASED BUILD RATE

Retirement village developer and operator Summerset has purchased a new site
at Ellerslie in Auckland.

The 3.8 hectare site will become the company's 19th retirement village.

The village will provide services to the central Auckland isthmus - an area
with a high demand for quality retirement villages and aged care.

This is the second site Summerset has purchased in Auckland since its IPO in
November 2011.

CEO Norah Barlow said "Summerset recognises the Auckland region is growing
rapidly in terms of both overall population and people aged over 65."

"Summerset has its sights set on Auckland. This land in Ellerslie is an
opportunity for us to provide Auckland with another high quality, modern
Summerset retirement village.

"We see ourselves as a solution to both potential residents and the
government in dealing with the housing and care challenges the population
will create."

 "We focus on finding high quality sites where we can build beautiful and
successful villages," she said.

Summerset has also announced updated guidance to its build rate intentions.

The company is on track to deliver its IPO forecast of 155 retirement units
in the 2012 financial year and now plans to build at least 200 retirement
units in the 2013 financial year.

Summerset has also upgraded its longer term build rate indicating it is
targeting to build 300 retirement units per annum by the 2015 financial year.
The build rate of 300 retirement units per annum represents 19% annual growth
on Summerset's current portfolio of 1554 retirement units.

The guidance given a year ago at IPO was a target of 250 units per annum by
2016.

"In addition to the construction of retirement units, Summerset will continue
to build quality aged care beds and facilities in all of our villages, both
new and existing," Mrs Barlow said.

"Our strong sales of occupation rights, range of quality new sites, and
increased efficiency through the in-house management of the development and
construction process has increased the rate at which we can expand.

"We are very pleased to be able to provide a guidance that exceeds that given
at the time of IPO."

To fund the increased growth rate Summerset has secured additional banking
facilities from its banking syndicate.

These now total $180 million in available facilities, an increase of $30
million.

Summerset is not seeking additional funds from shareholders in order to fund
the increased growth rate.

"Further announcements are likely in the new year regarding the commencement
of building at existing sites as well as the acquisition of new sites," Mrs
Barlow said.

"This is very good news for Summerset. We are continuing to grow and
demonstrate our strength as a company."

ENDS

For investor relations enquiries:

Julian Cook
Chief Financial Officer
[email protected]
04 894 7310 or 029 894 7310

For media enquiries:

Harriet Palmer
Communications Advisor
[email protected]
04 894 6993 or 027 601 2001
End CA:00230014 For:SUM    Type:GENERAL    Time:2012-11-21 08:40:41