NZ’s largest full capital gain share retirement village operator announces launch of 8th retirement village in Tauranga.

Karaka Pines Villages (KPV) is pleased to announce the granting of the Resource Consent for its 8th nationwide retirement village, located at Papamoa in Tauranga.

KPV operates retirement villages where residents receive the full capital gain that their unit achieves. KPV are the only scale operator in the country offering 100% of the capital gain back to residents. The new village at Simpson Road, Pāpāmoa, Tauranga is a joint venture with Te Kapu o Waitaha and iwi-owned property fund Hāpai Housing.

“We are very excited by the opportunity to have our second village in Tauranga,” says Chief Executive Officer of KPV Adam Yates.

KPV villages have a different financial model from traditional retirement villages, in that while residents still receive a Licence to occupy their unit, they also get the right to the full capital gain on the unit they occupy.

“We have been successfully operating this model for over 10 years and our residents have been the beneficiaries of the increases in capital value of their units in that time. We get lots of requests from retired people to establish one of our villages in their neighbourhood, and this Joint Venture with Waitaha and Hāpai is a great opportunity for the people of Pāpāmoa to enjoy living in one of our villages,” says Yates.

Te Kapu o Waitaha is the Post Treaty Settlement Trust (PSGE) mandated by Waitaha to hold and manage the Settlement redress assets under the Waitaha Treaty Settlement Claims ACT 2013. Adjacent to the village property is the Wairakei stream and Te Houhou Pa which have significant meaning to Waitaha.

“We are pleased to be in this arrangement with KPV where our whenua will be able to be developed while remaining in Waitaha ownership. Other benefits will include the restoration of the Wairakei stream, employment opportunities for our whānau, incorporation of our cultural heritage into the village, and a secure income which will allow Te Kapu o Waitaha to provide opportunities for whānau wellbeing and growth. We are confident the village will provide great value for the Iwi and the community,” says Areta Gray, Chair of Te Kapu o Waitaha.

The new Village will be called Karaka Pines Pāpāmoa and will contain 114 independent living retirement units and require a $75M investment.

“The village will be based on our proven designs and will form another wonderful community for retirement living where people thrive without being penalised financially,” says Yates.

Karaka Pines Villages LP was established in 2017 to expand the “Next Generation” full capital retirement village model established by Yates. It currently has 7 villages under development from Auckland through to Rolleston in Canterbury.

KPV formed a joint venture with Hāpai Housing to expand the number of Karaka Pines Villages around the country. Hāpai is a large-scale pan-Iwi property fund that is exclusively iwi-owned and governed and sees the strategic leadership that KPV presents to the New Zealand retirement sector.

“As an iwi-owned property specialist Hāpai Housing are excited to see the advancement of the retirement village at Pāpāmoa,” says Paul Majurey, Chair of Hāpai Housing. “A key reason for why we have invested in KPV is their expertise and innovation and the opportunity to grow their Next Generation model which ensures greater affordability in the retirement living sector. In addition, the opportunity for this project to enable Waitaha to realise value from their land aligns to the shared values for Māori.”

Background to Karaka Pines Villages

Karaka Pines is developing and operates 7 retirement villages throughout the country, with a total of 778 units planned and 370 units complete.

KPV retirement villages are different from nearly all the other villages in the country in that we allow the residents to have 100% of the capital gain that might accrue on their unit.

KPV fees are also generally lower than other villages with our Deferred Maintenance Fee (DMF) starting at 12.5% but with outgoings fixed for life, this increases to 25%.

KPV motivation for creating this village model is fairness. We have always considered that once a resident has paid for their unit, they have the greatest investment in it. Therefore, they ought to get the greatest share of the capital gain – and in our case, we think it should be all of it. In return, they should pay to us a fair fee for the service we provide in managing the village for them. We’ve concluded that 12.5% of the sale price is a fair exchange of value. We also have an option of having a fixed outgoings fee for life and a higher DMF of 25%.

Scale of Karaka Pines Villages

The success of this model is not insignificant as we have 2 completed villages under management, 5 villages under development and resource consent to develop an eighth.

So far, we have 370 completed units and a total of 892 planned.

The following are the villages:

  • Karaka Lifestyle Estate, Karaka, South Auckland – 281
  • Karaka Pines Rototuna, Rototuna, Hamilton – 128
  • Karaka Pines Waihi Beach, Wahi Beach – 96
  • Regency Park Estate, Rotorua – 87
  • Roseland Park, Hillcrest, Hamilton – 54
  • Kempton Park, Bethlehem, Tauranga – 54
  • Woodcroft Estate, Rolleston, Canterbury – 78
  • Karaka Pines Pāpāmoa, Pāpāmoa, Tauranga – 114

Adam Yates, the Chief Executive Officer, has 25 years of experience in the Aged Care and Retirement Village sector and has led the development of 12 villages in this time.

Karaka Pines Villages is based in Tauranga. karakapines.co.nz

About Hāpai

Hāpai is a property fund that is unique in Aotearoa being 100% Iwi owned and controlled, and singularly focused on empowering enduring Māori success in the property sector. Hāpai concentrates on combining Iwi capacity with proprietary opportunity to drive the collective growth of its iwi investors. Hāpai was founded in 2019 by six Iwi, and has since grown to nearly thirty Iwi investors, undertake their property investment collectively, enabling scale, diversification and effective execution. Hāpai’s investment mandate covers commercial investment property, housing (mixed-tenure, build-to-rent, and retirement living) and development property (land and residential development).

The Hāpai portfolio includes eight commercial properties, over 200 residential BTR properties under development, alongside over 750 residential sections in the development pipeline.