After finding success in the retirement market in New Zealand, Cliff Cook (pictured with his son Neville) is now pioneering a new generation of boutique developments targeting London’s growing elderly and wealthy population.
Cook was founder of Metlifecare, which he sold out of in 2005. Now his LifeCare’s developments in England offer apartments from £650,000 up to £3 million and care home weekly fees between £2500 and £3500.
Son Neville is a director of the Lifecare companies in the UK, owned through the family’s New Zealand company Renaissance Holdings (NZ).
However, his latest effort to build another facility in West Hampstead, London, has not going smoothly. Cook’s plan is to build 81 “extra-care” apartments and a 15-bed care home in a gated complex, complete with its own gym, cinema and solarium.
But residents’ associations in the area have resisted the plans, which used land designated as local green space, with some claiming at a council inquiry allowing it to go ahead would have a “catastrophic” effect on the local area and its biodiversity.
LifeCare’s barrister Sasha White QC called some of Camden’s reasons for refusing permission “risible” and said the council was motivated by a “mentality of resentment.”
In June the council dismissed LifeCare’s appeal.
“The planning process here is arduous and takes time,” says Cook.
“One of the great property moguls of London, who runs Barclay Homes, he says to me on average it takes him five to eight years to get a consent.
“We’ve owned the site for three years, we’re not there yet. We’ve engaged with council. We’ll get a scheme that works both for us and the council.”
He describes the opportunity in the UK as “enormous.”
“One of the important facets of the New Zealand retirement village industry was setting up the industry body that’s been very instrumental in seeing the industry have such a good foothold in New Zealand. It’s 12.5% of the over-75 market as opposed to most Australian cities that are sitting around 12%.
“Here it’s not even a fraction of 1% penetration of the UK market in a population base, including Northern Ireland, Wales and Scotland of some 68 million people.
“It’s been worth the effort for us.”
The numbers are bigger, he says.
“To do a village in London you’re looking at spending at least £100m to get your base village going, but the asset class is growing.”
New entrants with capital, including big players such as Goldman Sachs, are entering the industry.
“That’s positive for the industry and positive for us. While we’re the only retirement village in London currently we won’t be for long.
“The progress we’ve made with recognition of this asset class and the type of title structure we offer have all been big positives for us. I’m very comfortable with what we’ve achieved up here.”
Meanwhile Cook can take satisfaction in one of his other projects, A2 Milk, which has skyrocketed up the NZX to become its biggest local company with a market capitalisation of more than $11 billion. Cook joined the board as chair in 2004 and served in that role until 2015, guiding the company into its current incarnation. NXZ disclosures show his once significant stake was sold down below 5% that year.
A2 listed on the ASX four years ago and is now one of Australia’s top 100 companies.
“Not bad for a company that Fonterra tried to kill, and more than once,” Cook told the Australian Financial Review.
Photo: NewsPixNZ
2018: $750 million