17 Nov 2012

Strong demand seen in Christchurch by Ryman

6:28 am on 17 November 2012

Ryman Healthcare says its Christchurch market is heating up dramatically due to an undersupply of retirement facilities and more elderly people looking to move rather than wait for rebuilds.

The rest home operator's profit rose 15% to $68.8 million for the six months to September, compared with last year, following heavy investment in facilities in the last 18 months.

The company, which operates 25 retirement and rest home villages nationwide, made an underlying profit of $48.1 million, a rise of 16%.

Ryman managing director Simon Challiessaid the Christchurch market is heating up dramatically in terms of business activity.

He said Ryman has invested heavily in Christchurch over the last 18 months and has just opened a new village which now has more than 300 residents.

Mr Challies said there was already a lack of supply of retirement facilities in Christchurch before the earthquake which destroyed about 200 units.

He said the company has had strong pre-sales on new units and is forecasting a 15% profit growth for the year.