13 Feb 2009

Retirement village company announces $61m loss

7:27 am on 13 February 2009

The country's second biggest retirement village operator Metlifecare has sliced $55 million off the value of its properties in a move it says reflects the market's meltdown.

As a result of the write-down, the company has made a loss of $61.9 million in the six months ending December compared with the same period the previous year.

Its properties are now worth a combined $1.1 billion.

Metlifecare says the slowing property market has made it difficult for prospective residents of retirement villages to sell their homes, leading to $10 million reduction in the company's operating cash flow.

The company intends to raise capital by issuing shares.