26 Apr 2012

Occupancy bond system not needed - Summerset

8:00 am on 26 April 2012

Retirement village operator Summerset says there is no need for occupancy bonds to help fund build and maintain care facilities as the number of older people grows rapidly.

Analysts say the listed company is well-placed in the sector, offering aged care facilities as well as retirement units, which will be attractive to potential residents.

The provision of retirement and care services for the elderly is a sensitive issue, with regulation of the sector having to balance the protection of residents against much-needed investment.

In Australia, investment has been facilitated by aged cared residents paying a bond which is repaid when they depart, but Summerset chairman Rob Campbell says there no need for the system in this country.

The industry is growing well in New Zealand under the current structure," he said. "The Australian market is more complex and I don't know that it's really producing any better outcomes than are being produced here."

The company, which listed last year, is concentrating on building new villages throughout the country.