Australia NZ’s Ryman Healthcare ‘best selling market

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’NZ’s largest village and care operator, Ryman, has revealed in their annual report that sales of retirement units in its first Australian village have been the fastest they have ever experienced.

So now they want five open and trading by 2020, just under five years away. This means they need to acquire three sites this year to add to the Brandon Park site they bought last May for $47.5 million, paying a record $854 per square metre. They have already closely inspected two.

The first Melbourne village, called Weary Dunlop, opened sales last May and now only has 42 units left out of 257 ILUs and serviced apartments, or 16%.

Ryman is very focused on sales. In December they had just 63 village resale units available across their portfolio, or one month’s stock and claim this was higher than they would like. Here in Australia 4 to 6 months stock is not uncommon.

Over the 12 months they also increase prices 6%. We are informed they review prices at least six monthly. At Weary Dunlop town houses were first sold at $400,000 – a slight discount to enter the market – but are now selling at $570-$580,000, a 43% increase in 12 months. Ryman takes all the capital gain.

Also in the annual report they feature the fact that none of the Australia major village operators have residential care in their product mix while for Ryman it’s an essential feature in their success; and consequently they only market to people aged75+.

On completion Weary Dunlop will have 206 units plus 51 serviced apartments and 60 care beds.
Serviced apartments are also vital to the mix. Across their portfolio they had 3,300 ILUs and 1,500 serviced apartments.

For the 2014/15 year their revenue profit was $136 million, from 30 villages. This compares to say RetireAustralia with approximately 28 villages and a revenue profit of approximate $40 million.
Ryman of course has grown organically, so they have shaped their product as they have expanded. They proudly state that they raised $25 million at their stock exchange listing in 1999 and have had no further capital injection. Profit growth and bank finance has funded their expansion.