Metlifecare’s $30K Cash Back Offer Faces Scrutiny from Advocates

A recent cash back promotion by Metlifecare, offering $30,000 for new units in select retirement villages, has drawn criticism from resident advocates. They argue that the scheme could disadvantage former residents awaiting repayments for their previous units. The retirement village operator, however, disputes these claims, asserting that the offer has not negatively impacted those waiting for repayments.

Details of the Cash Back Promotion

From July to October 2023, Metlifecare launched a campaign providing a cash back incentive to potential buyers of an occupation right agreement (ORA) for new units in ten of its villages. Five of these villages are newly developed, while the other five consist of established villages that have undergone extensions or rebuilds. According to the Retirement Village Residents Association, this initiative could breach regulations that prohibit operators from prioritizing new sales over resales of previously occupied units.

Nigel Matthews, Chief Executive of the Retirement Village Residents Association, raised concerns regarding the potential ramifications of such a promotion. He stated, “Many former village residents have to wait for a long time to get payment for the resale of their units when they move out.” Matthews emphasized that cash back offers might extend the sales timeframe, thereby delaying capital repayments for residents awaiting their funds.

Reports from former residents at one of the villages, Greenwich Gardens, indicate that at least four units are available for resale, with one unit having been vacant for over twelve months. Matthews noted that two former residents are still waiting for their repayments while the promotion is active until February 2024, which he claims benefits Metlifecare more than the residents.

Response from Metlifecare

In response to the backlash, a Metlifecare spokesperson asserted that the cash back promotion has not adversely affected former residents. They explained that prospective buyers often consider both newly developed units and resale options, which offer distinct features. For instance, in one village, two-bedroom resale apartments feature two bathrooms and a carport, while newly developed units only offer one bathroom, with car parking available at an additional cost.

The spokesperson noted that the price point for resale units is generally lower than that of new units, making them attractive to buyers. “If a prospective resident visits one of our newly developed units due to the promotion, they may be more inclined to consider a resale unit based on its specifications and pricing,” they stated.

Metlifecare emphasized that the promotion was time-limited and designed to encourage sales across both new and resale units. They pointed to a reduction in available resale units since the promotion began as evidence of its effectiveness.

As New Zealand’s third-largest retirement village operator, Metlifecare manages 36 villages and houses approximately 7,200 residents. The company, owned by EQT Infrastructure since 2020, reported a net profit after tax of $66.4 million for the year ending June 2025, reflecting a 25% increase from the previous year, alongside a 17.6% rise in total ORA sales to $546.4 million.

As the situation unfolds, the ongoing debate highlights the need for transparent practices within the retirement village sector, particularly concerning resident repayments and sales incentives.