Summerset shares fall 3.5% after council denies Hobsonville consent

Chief executive Norah Barlow

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.

(BusinessDesk)

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7 Comments & Questions

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NBR should do a tally of all these denials of consent (including the Milford apartment one also featured today) and try to work out how much economic activity these jumped-up bureaucrats are preventing. New Zealand would be a much wealthier place if these 'planners' (stoppers) were put to work doing something productive like cleaning toilets or picking apples.

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Yes, and these are just the ones you hear about. Many go unheard. All have tens of thousands of dollars of useless costs and litigation, while lefty 'planners' keep the hills green, house prices up and the country poor.

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Move on, nothing to see here. Shares are now back up again and in positive territory.

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And down again. Opened trading at 2.55 currently 2.52. I agree with Anonymous, it would be interesting to note how much new building is being held up. These "planners" are employed. Perhaps a look towards the unemployed may get them to think more about creating work than putting more on the unemployment line.

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The RMA and council process have become a means to transfer investment funds to bureaucrats and lawyers who perform no useful economic purpose.

I am all for having standards in buildings, but not a Treaty of Waitangi like gravy train for lawyers and councillors. And we must not forget that even after all the wasted money, and wasted time, we only get what some bureaucrat thinks we need, and what do they know? Nothing, because if they did councils would not be in the mess they are in.

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Is the leader of the Environmental Defence Society still a director of the main Hobsonville developer?

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We talk about a housing crises, then the council denies a retirement village that would free up hundreds of homes around Auckland for first home buyers. Bad move Auckland Council.

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