NEWS RELEASE

from Hutt City Council

18 June 2003

$1 MILLION WINDFALL FOR HUTT CITY

An innovative sale and purchase agreement for Hutt City Council's Centre City Plaza, negotiated last year, has resulted in a $1 million windfall for the Council, Bryan Jackson, chairman of Hutt Holdings Ltd announced today.

"This is a fantastic result for the city and demonstrates what can be achieved when Council and the private sector can work together for mutual benefit," said Bryan Jackson.

The Centre City Plaza was sold to Logos Developments last July for $6 million. The agreement negotiated between Council-owned Hutt Holdings and Logos called for Council to leave $1 million in the building as a first mortgage attracting interest.

A clause in the sale agreement stipulated that, if Logos Developments on-sold the building within 3 years, and above a pre-agreed price, both parties would share in the profit.

Logos Developments added two floors to the building to house a new WINZ call centre.

The sale of the building has now gone unconditional and Council can expect payment when the transaction settles at the end of October this year.

Hutt City Mayor, John Terris was extremely pleased at the additional gain to Council's coffers and congratulated the board of Hutt Holdings on achieving an excellent result for the city and ratepayers.

"The sale of Centre City Plaza has revitalised plans for the development of High Street as a hub of activity.

"The sale agreement also demonstrates the benefits of approaching asset sales in a considered and strategic manner aimed at returning maximum value to ratepayers," said Mayor Terris.

ENDS

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