The village is Senior Trust Capital’s first equity investment and is an amalgamation of multiple site’s around an original 14 villa village. It will be re-developed into a 105 unit beachside village.
Palm Grove Village (now re-named The Grove – Orewa) was acquired by Palm Grove Partnership (PGP) in March 2016. The village was Senior Trust Capital’s first equity investment and as an initial acquisition, the village comprised of 14 independent villas and no development land.
Post-acquisition the partnership purchased 5 other neighbouring residential properties to unlock the development potential for the site, resulting in the development plan and resource consent application for 69 additional 1, 2 and 3 bedroom apartments and common amenities, as well as the 12 remaining original villas.
The village is nestled in the heart of the Orewa seaside township, 200m from the beach and within a short flat stroll to all town amenities. Orewa is 40 kilometres north of central Auckland with direct motorway access and has become a very popular retirement destination for Auckland retirees.
Orewa is one of the fastest growing areas in New Zealand and has a resident 70+ population within the primary and secondary catchments of the village of 13,565. This population is set to grow by a robust 136% by 2043 to 20,125.*
Penetration Rates for 70+ population in the primary catchment area is 13% and 18% in the secondary catchment. This compares to the Auckland overall penetration of 9.2% and a national average of 7.9%. These rates show a high acceptance of the Retirement Village model in the area backed up by a relevant, engaged and affluent population.*
The area is home to various large-scale retirement villages on the surrounding hills but none so central or so accessible to the town and beach.*
Unit demand and absorption forecasting shows a future demand of 733 units required in the primary catchment area up until 2028 and a further 921 in the secondary catchment. The net latent demand over and above the current supply pipeline is 193 units and 437 units respectively.*
In summary the population forecast, demographics, demand and supply variables all show a positive environment to develop a retirement village of this scale and positioning. Further opportunity also resides in the provision of high quality care within an expanded development.
1, 2 & 3 bedroom apartments
Senior trust Capital shareholder stake
additional apartments for potential future development