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Aged Care Retire
Villages g to z Introductory
page Australian
section Forrester
Kurts Properties (FKP)
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extent of any allegations made. Any comments made
are based on the belief that there is some
substance at least to so many
allegations.
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A Queensland construction company that moved
into retirement villages. It expanded in Australia
and joined with Macquarie Bank to expand into New
Zealand.
and
Australian Retirement Homes
Forrester Parker was founded in the 1980s and listed in the 1990s. It merged with Peter Kurts Group in 1998.
It was primarily a Queensland property developer and was very successful. It expanded interstate.
Newly merged Queensland developer Forrester Kurts has returned a 15 per cent increase in net profit to $8.4 million, up 15.6 per cent.
1998 Merger
It is the first result since Queensland-based developers Forrester Parker and the Peter Kurts Group merged to create the biggest listed property developer in Queensland, with operations across residential, retail, commercial, industrial, construction and retirement villages.
Forrester Kurts To Shift Focus Australian Financial Review September 3, 1998
Forrester Kurts has made its first foray into Tasmania, with its wholly owned subsidiary Australian Retirement Homes Ltd buying a Hobart complex for $3.55 million.
Jun 1999 Australian Retirement Homes
The acquisition of the Derwent Waters Retirement Village boosts Australian Retirement Homes' portfolio to 17 villages with a total of almost 2,000 units.
Forrester Crosses Bass Strait Australian Financial Review June 9, 1999
KFP built retirement homes and established Australian Retirement Homes as the vehicle to own and operate these. FKP targeted the self funded retirees who could afford to purchase their own home. Although servicing fees were profitable most of FKP’s profits came when the homes were sold as they took 25% of the sale price. They benefited from capital gains.
This model was capital intensive with profits delayed for 7-10 years - ie until the elderly residents moved on. KFP’s long history of steady expansion into retirement homes and its broader property and other businesses ensured it did not experience the liquidity problems which plagued Primelife and Village Life. It was consistently profitable and was not affected by scandals, board conflicts or problems in care. Its founder Rod Forrester stepped down gracefully in 2000.
"As well as sourcing developer profits from building and selling-off additional dwellings in existing projects, the company receives a deferred management fee in all resales of up to 25 per cent of the sale price,'' Mr Toner said yesterday.
June 1999 The deferred management fee
Forrester Crosses Bass Strait Australian Financial Review June 9, 1999
BRISBANE-based property developer Forrester Kurts Properties yesterday indicated its investment in retirement villages will deliver strong profits in coming years.
Mar 2000 The model
Managing director Rod Forrester said it was the group's 11th year in the retirement village sector.
----------------
"We only get our return when people move on, so you outlay a lot of money up front and you don't get a return for seven to 10 years. We do see it continuing to grow.
Forrester Kurts puts its faith in the future of retirement villages. The Australian March 10, 2000
Mr Forrester, who founded Forrester Parker which merged with Kurts in 1998, will continue to provide consulting services after his retirement.
Jul 2000 Forrester retires
RETIREMENT OF DIRECTOR - FORRESTER KURTS PROPERTIES. Inside Retailing July 3, 2000
Forrester Kurts, a Queensland-based development company with interests in all areas of property from land sales to retirement villages, - - - .
Dec 2002 Extent of business
Forrester Kurts chief to step down. The Australian December 13, 2002
The chief executive of FKP, Peter Brown, is adamant that investing in retirement villages only pays off in the long term. "The reality is that the pay-back on greenfield villages can be slow ... you do not get back any dollars for about eight years, on average.
Aug 2005 Need a cushion for several years
--------------------------
Brown says retirement villages account for about 25% of FKP's earnings annually - - - , a figure he expects to reach about 33% in the next few years.
A tough old market BRW August 4, 2005
At slightly less outlandish multiples, FKP which, like Village Life, is based in Queensland describes itself as a diversified property developer, and its interests include resorts. But it is also the largest owner and operator of retirement villages in Australia. It's trading at 9.79 times forward earnings with a 4.77 per cent net dividend.
Apr 2004 largest retirement operator in Australia
Grey Power Can Line Your Pockets Australian Financial Review April 21, 2004
Close to 12 years ago, FKP, then called Forrester Parker, bought 14 retirement villages from a division of the Adsteam group's Pioneer Homes in a $7.75 million deal.
Mar 2004 Retirement section key to profits
It has proven to be a shrewd acquisition, well ahead of its time, and one that analysts believe is now underpinning FKP's healthy share price.
Village people reap reward Australian Financial Review March 10, 2005
FKP was in a better position than its competitors to grow rapidly in preparation for the age care bulge. It set a target of steadily increasing its income from retirement developments. It bought the Queensland-based Forest Place Group which was having some troubles in profitability. It aligned itself with Macquare Bank, forming a 50-50 venture to expand into New Zealand.
Dec 2002 Buying Forrest Place
Forest Place has been struggling to overcome problems with its financing arrangements and a complex pricing structure. The company reported a $21.3-million net loss for the 12 months to June 30, 2002, on revenue of $12.8 million, which was down 31%.
Retirement villages as good as gold Business Review Weekly December 5, 2002
Property investor FKP Ltd is making an offmarket takeover bid for Brisbane-based retirement village manager Forest Place Group Ltd.
Nov 2003 ?? Still buying a year later. What happened?
FKP Ltd announces takeover bid for Forest Place. Australian Associated Press Financial News Wire November 8, 2003
In 2001 Forest Place had a boardroom stoush which prompted a series of resignations by directors. In 2001-02 the company surprised the market by writing down its retirement village portfolio by $19.4 million and in July last year Forest Place's bankers, led by Suncorp, refused to provide additional funding.
Dec 2003 Forest Place's problems
Watch The Boom As These Babies Age Australian Financial Review December 13, 2003
The FKP Property Group hit a stockmarket high on Friday after announcing the purchase of another 14 retirement villages in Adelaide, Brisbane and the Gold Coast.
Sept 2005 Still growing
The villages, which are being acquired from the Adelaide-based National Retirement Company, will add 1300 units to the FKP portfolio at a price of about $52 million.
Queensland's FKP buys more retirement villages Australian Financial Review September 24, 2005
Having become the largest in Australia FKP followed the global trend and targeted New Zealand. It formes a 50-50 partnerhip with Macquarie Bank and went shopping
The targeted expansion into NZ is part of the FKP's goal to increase its recurrent income to 50 per cent of earnings by 2008 with a particular focus upon its retirement village assets.
Feb 2005 New Zealand and interest in Aevum
----------------
Also on FKP's longer term radar is listed Australian retirement group, Aevum which has already attracted a takeover bid from Primelife.
Healthy FKP readies bid for Metlifecare Australian Financial Review February 25, 2005
Property and investment group FKP has teamed up with Macquarie Bank to make a $NZ328 million ($298 million) bid for New Zealand's listed Metlifecare retirement village group.
Oct 2005 Buying NZ's Metlifecare
The joint-venture partners announced after trading closed on Friday that they had established Retirement Villages New Zealand and agreed to buy Private Health Care Group's 25 per cent interest in Metlifecare.
FKP, Macquarie in joint bid for NZ retirement group Australian Financial Review October 3, 2005
Metlifecare's portfolio holds 13 villages with 1768 units, 248 nursing home beds and 137 hospital beds.
Oct 2005 Metlifecare
Like FKP, Metlifecare's business model targets the self-funded retiree.
FKP, Macquarie find a home in NZ Australian Financial Review October 20, 2005
"The joint venture with Macquarie Bank is seen as an important step for the group as it couples the group's development and management skills of retirement village assets with Macquarie Bank's financial capacity and experience in overseas transactions," Mr Macdonald said.
Oct 2005 Macquarie's support
Bumper year as FKP expands Australian Financial Review October 29, 2005
Forrest Kurts did own some nursing homes but did not pursue this sector. It did pursue the integrated care model to the extent of investing in crematoriums.
Forrester Kurts is developing crematoriums in a joint venture with the Brisbane City Council. Rod Forrester, managing director of Forrester Kurts, said the company opened its first crematorium at Mt Gravatt cemetery in February 1999, and is planning a new crematorium at Toowong cemetery. The new business is being run by a subsidiary, Omega, headed by director Tom Hogan.
Jun 1999 Crematoriums
Competition warms up in Brisbane's crematoriums. Business Queensland June 18, 1999
Forrester Kurts currently operates 20 retirement homes, four blocks of serviced apartments and one nursing home, but the company hopes to be able to announce more nursing home acquisitions by the end of the year.
Nov 2001 Interest in nursing homes?
Forrester to expand its retirement sector. The Australian November 2, 2001
KFP were investigated by the ACCC for breaches of the Trade Practices Act. On 30th July 2001 they admitted to advertisements in the Courier Mail that gave incomplete and misleading information about a promoted Frequent Flyer Points carrot offered to those buying units from them.
It appears that they also gave misleading information in regard to monthly payments in a negative gearing scheme. It was suggested that the figures on which this were based were excessively optimistic and not realistic.
Forrester Kurts was required to recompense and cancel the contracts and inform all those likely to have acted on them. It was also required to set in place a number of compliance procedures, and compliance staff for a period of three years.
see <http://www.accc.gov.au/content/index.phtml/itemId/331589/fromItemId/267080>
KFP was also one of those crticised by Terry Rider (author of "Buyer Beware") on a Four Corners TV programme (April 2003) for allegedly running deceptive seminars.
see link Four Corners: Interview with Terry Ryder
Chapter 4 of Ryder's book gives a detailed account of a seminar run by Forrester Kurts which Ryder clearly believes was deceptive and he indicates why. This description if available on the www at <http://www.abc.net.au/4corners/content/2003/20030421_tall_stories/ryder.htm>
If the company behaved in the way suggested by these reports then there is clearly good reason for concern. It operates retirement villages. Many of these retirees may be vulnerable older widows or people whose acuity as customers may be declining. Their life savings are limited and must carry them through a long retirement. As we know from other scams (e.g. Westpoint and Citigroup) they readily become victims in the money market. They and their relatives should be wary about the source of the record profits KFP is currently making. Are these based on the standard of the contracts and the services they provide or on the sort of practices described in the material above?
FKP reported a record $33.4 million profit yesterday, up 59 per cent on the previous period. It said its retirement and property investment sectors were the stand-outs.
Feb 2006 Very profitable
Qld trio belie slump Australian Financial Review February 24, 2006
For Updates:- A good way to check for recent developments in aged care is to go to the aged care crisis group's search page and enter the name of the company, nursing home or key words relating to any other matter in the search box. Most significant press reports are flagged there. The aged care crisis web site has recently been restructured and some of the older links used from this site may not work.
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This page created Sept 2006 by
Michael
Wynne
