Council seeks financial advice on possible asset sales

Christchurch City Council is seeking independent financial advice on possible asset sales to help pay for the city rebuild.

In the Long Term Plan consultation document the Council proposes the $750 million release of capital from its commercial arm Christchurch City Holdings (CCHL), the parent company of key assets such as Lyttelton Port Company, Orion, and Christchurch International Airport.

Mayor Lianne Dalziel says the Council is approaching the capital release option with an open mind and will not make a decision until it has completed consultation on the Long Term Plan.

“Asset sales are only on the table because we face an estimated $1.2 billion shortfall in funding. The proposal is to sell shares to strategic partners that have the community’s long term interests at heart, and the commercial links and expertise to improve the performance of Council-owned companies.

“We’re taking a carefully measured approach to this important decision. We’re listening to public feedback. We’re also getting independent financial advice so we have a clear picture of the pros and cons of the various options open to us should the Council agree to a capital release as part of the Long Term Plan.”

Council Chief Executive Officer Dr Karleen Edwards has set up a project team to investigate the sale options and appointed financial consultants Cameron Partners to provide expert commercial advice.

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