Scott Scouller CFO and deputy CEO Summerset
This week we had a ZOOM talk from Scott Scouller. He is a Whitby resident who is CFO and deputy CEO of Summerset, the retirement village operator. His address was detailed, frank, and fascinating.
Scott gave us an insight into how Summerset began, and its extraordinary growth over the last 20 years. It is a $2 billion business owning 30 villages, and opening two new villages every year, at a cost of $150 million each.
Summerset employs 150 staff at head office, about 50 staff in each village, and contracts another 1,000 or so in construction work.
Scott explained at length how the company searches for, and acquires, new sites and the criteria they use. This seems to be its core skill and focus.
The retirement village business has become very competitive, dominated by Summerset, Ryman, and Metlifecare. Each player pitches to the market in different ways.
Summerset offers a homely environment, ‘peace of mind’, and a continuum of service from independent living through to full hospital and dementia care. Scott claims their residents have a greater degree of freedom, e.g. to choose colour schemes and garden design.
Residents are typically in the 70-80 age group, stay for life in nearly all cases, and have an average stay of seven to eight years.
Scott told us that residents pay in three ways: a weekly maintenance fee, payment for care, if needed, and a management fee which is 25% of the in-going capital cost and only recovered on the residents departure.
The retirement villages' sector has tapped into a burgeoning and wealthy market: asset-rich baby boomers looking for a comfortable and worry- free lifestyle in later years. It is a brilliant business model.
But boiled down, it is a property development business which depends for its stellar profitability on building more and more villages. The companies involved won’t run out of developable land, but they may in the end run out of retirees who are sitting on assets generated by house price inflation.
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Proposed parking meters down Main Road, Tawa
Copied from a Facebook post: Your Voice Counts On The Proposal For Paid Parking
Wellington City Council (WCC) have opened their consultation on the Long-Term Plan. This runs from Friday 12 April to midnight Sunday 12 May 2024. It is advised that you read the consultation document as it covers important decisions on Water, Waste, Investments and other key proposals, one of which is a proposal to introduce paid parking in the suburbs. You can find further information and a submission form here: www.letstalk.wellington.govt.nz...... Please remember to be kind in your submissions – councillors are more likely to respond to positive and well-defined responses. Tawa Business Group has heard plenty of people who are strongly against introducing paid parking and we want to make sure that WCC hears your voices too. These stories may help you with your submission.
• These are already difficult times with the high cost of living and an increasing number of local redundancies, this is an extra charge that people cannot afford.
• The suburbs should not be subsidising the income shortfall from removing car parks in the CBD. Money raised in the suburbs should be used for local investment.
• Tawa has a different demographic than the CBD. Many older and less able people rely on the services that the suburb provides and being able to park easily and directly outside their destination is important for them being able to leave their homes and reduce feelings of isolation.
• The proposal for paid parking does not follow the 2020 Parking policy that says that paid parking will be introduced if occupancy is often over 85%, turnover is low and non-compliance is high.
Our three Northern ward Councillors all voted against the proposal in February but they lost on a vote of 10:7. Councillors changed their minds about reducing hours in swimming pools and libraries so they can change their minds about this too BUT only if you submit your feedback. The more submissions we make, the less likely it is to happen.
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