New Zealand’s largest listed retirement village company is preparing to leave an Auckland lakeside construction site after carrying out earthworks and excavations in what was planned to be a $120 million project.

Ryman Healthcare is
pausing developments or selling land at five sites in New Zealand and in Australia.

One of those sites is 41-45 Killarney St, Takapuna.

In 2020, the company announced a $120m project there and was advanced with groundworks.

But plans are now stalled for the almost-7000sq m ex-fire station site next to Killarney Park on the shores of Lake Pupuke.

“The current hole in the ground at our Takapuna site forms the basement of the development. Activity on site to stabilise the basement excavation is in the final phase of completion. From there, all ongoing development will be paused, as signalled at our FY23 half-year result,” a Ryman spokeswoman said.

An apartment block with 67 independent units, 31 serviced apartments, a rest home, a hospital and dementia-level care accommodation was planned.

All up, 45 aged care beds were planned.

In November, chief executive Richard Umbers said: “At the moment, we’ve done groundworks at the site. It’s ready to build when we’re ready.”

When it bought the land, a resource consent had already been granted for a five-storey block there.

Jeremy Moore, chief development officer in 2020, said then that the site was in one of New Zealand’s premium locations, perfect for a boutique village: “Our residents are in for a treat. There are stunning views in all directions and it’s close to everything you could need in Takapuna. We think it is a stunner, and we can’t wait to get going and build.’’

All that changed when the market turned and Ryman put plans on hold.

Workers have lately been preparing the site to be left, without any immediate plans for what happens next.

On April 29, 2022, Ryman reported how kaumātua from Ngāti Whātua o Ōrākei said karakia to acknowledge those who had gone before.

David King, who was then corporate affairs manager but has since left Ryman, said: “Now all we have to do is get on and build it.”

By last November, the company described the housing market as “challenging” and Umbers announced Ryman would be selling two sites and deferring work on another three:

No public advertising exists for the Kohimarama or Newton sites.

Ryman is not marketing those blocks externally.

This month, Ryman downgraded its profit outlook from $300 million-$330m to $265m-$285m, citing slower sales and falling margins.

It gave the more optimistic guidance at its interim result in November, but said today key drivers of change were lower volumes on new sales and lower margins on those sales, citing phased development of some villages where main blocks were yet to be built.

Ryman had expected to sell 273 occupation rights agreements on its villas, apartments and hospital beds, but now says it will sell only 218 of those in the second half of the financial year.

Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.