NZ’s second-largest village operator Summerset cuts building forecast by 25%

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Summerset Group has closed its 12 construction sites during the country’s strict Stage 4 four-week lockdown and says it expects to complete up to 100 fewer units in 2020.

“The 2020 build rate of 400 units is currently expected to now be in the range of 300 – 350 units. This assumes disruption to construction activity for a period of up to three months,” deputy chief executive Scott Scoullar said.

The operator has secured two sites for future development in Victoria.

Mr Scoullar stated that sales of their retirement units were still “at good levels” – even for the week starting 16 March when the COVID-19 alert system was introduced.

But their case points to a problem facing many village and aged care operators – the cost of stalled developments will affect bottom lines.