A new model of retirement village is set to be built in Karaka. The developer, Tauranga based company Karaka Pines Villages has applied to Auckland Council for a resource consent to build a 310 unit retirement village and country club on its 11 hectare property on Bremner Road, Karaka. The village will be called ‘Karaka Country Estate’. It forms part of the 2500-residence “Auranga” community development being overseen by Auckland based developer Charles Ma.
CEO of Karaka Pines Villages Adam Yates says the cost to develop a village of this size is not expected to be less than $240M and the project will be spread over about 5 or 6 years. “We have a group of investors who are very excited to be involved in an investment of this nature” says Mr Yates. “They get returns from an investment which also makes a positive contribution to the wellbeing of retired people both financially and socially.”
Karaka Pines Villages develops and operates retirement villages under the ‘Own Your Own’ concept developed by Mr Yates during his 17 years as CEO of Manor Group Investments. During that time he was involved in the development of six retirement villages in the Bay of Plenty, Auckland and Canterbury regions.
‘Own Your Own’ is a different financial model from traditional retirement villages, in that while residents still receive a Licence to occupy their unit, they also get the right to the full capital gain on the unit they occupy.
“What this means” says Mr Yates, “is that if you purchased a unit in 2012 for $400,000, the sale price in 2017 might have been about $680,000. Instead of the $300,000 return you would have received under the traditional model, in our village your return would be about $650,000 after selling fees and expenses. We believe that a retired person should get to retain and build on the wealth they have spent a lifetime accumulating rather than sacrificing it to the operator of a retirement village.”
“At our villages we take pride in supporting the rights and individuality of our residents,” says Mr Yates. “It is important to us that our residents have flexibility to choose the level of service that they require.”
Karaka Country Estate will operate in a similar way to traditional retirement villages, in that there will be communal facilities such as a bowling green, swimming pool and country club with an on-site manager, grounds keeping and maintenance services. As in other villages, residents will pay a monthly fee for these services. A key difference to other retirement villages is that residents at Karaka Country Estate will have a say in the management of the village.
“The attitude that we bring to a village is that it really belongs to the residents, as they are the ones that have to live there, so, of course they should have a say in the way that it operates”, says Mr Yates.
An existing large residence near Drury Creek will be converted to a Country Club including a restaurant, gymnasium, swimming pool, lounge area, and adjacent bowling green.
Part of the site has been set aside for the future construction of an aged care facility/hospital, and Karaka Pines Villages are in discussion with potential operators of the facility.
A resource consent application for Karaka Country Estate was submitted to Auckland Council in early December 2017. The land is also currently the subject of an application to Auckland Council by Charles Ma to rezone parts of the area to Residential from Future Urban.
Civil works for Karaka Country Estate should begin in June 2018, subject to issue of resource consent. The first units will be on the market in the first quarter 2019.