Summerset shares fall 3.5% after council denies Hobsonville consent
"The RMA and council process have become a means to transfer investment funds to bureaucrats and lawyers who perform no useful economic purpose."Featured comment
Shares in Summerset Group fell 3.5 percent after Auckland Council turned down the retirement village operator and developer's application to build a new village in Hobsonville, a decision it plans to appeal.
Chief executive Norah Barlow says the decision is disappointing, but will not impact on the Wellington-based company's build rate of 200 units this year and 300 units by the end of the 2015 financial year. Summerset announced the 7.6HA purchase last year.
The shares fell 9 cents to $2.45 in trading today.
"This is disappointing to us as we are looking forward to starting development on this decision," Ms Barlow says. "We can confirm we will be appealing the decision."
The decision comes before Summerset is scheduled to report annual earnings on Monday next week.
Forsyth Barr analyst Jeremy Simpson expects the retirement village operator to more than triple net profit to $14.5 million on a 34 percent gain in sales to $53.3 million.
The group sold 331 occupation rights for more than $100 million to village residents in the 2012 calendar year, from 231 sales and resales a year earlier, beating its initial public offer forecast by 28 percent.