NZX Announcement 10 February 2004
Hirequip New Zealand Limited
Last year, Hirequip announced that it had entered into a conditional contract to sell its 30 percent shareholding in the
Northwood Supa Centa at Belfast, north of Christchurch. This sale has now gone unconditional with the transaction
resulting in a profit of $3.0 million to Hirequip.
“The sale of our holding in the Supa Centa, in a buoyant property market, has enabled the company to dispose of what is
now a non-core residual asset, and is consistent with our intention to materially grow our hire equipment business.”
Hirequip New Zealand Limited today also announced that its appeal to the High Court, contesting an earlier Environment
Court decision not to grant the plan change approval for the Waimakariri Employment Park, has been unsuccessful.
Hirequip applied to have 45 hectares of rural land adjoining Christchurch’s Northern Motorway, north of the Waimakariri
Bridge, rezoned to allow a mixed-use commercial development, including a motorway service area. Following the
Environment Court’s decision to decline the application, the company lodged an appeal to the High Court.
Hirequip’s Executive Chairman Graeme Wong said, “The High Court’s decision effectively means that this development
cannot now proceed as we had originally envisaged.”
While this was a disappointment, the company’s contingency plan, in the event the land wasn’t rezoned, has always been
to subdivide the land into some nine or ten lifestyle blocks of around 4 hectares each.
“Planning is underway on this subdivision, which we intend to bring it to the market in the near future. He noted that
three houses owned by the Company situated adjacent to the development property have already been sold.”
Mr Wong said that the net asset value of this development would be written down by an expected $3 million in the interim
result, which is due later this month. This will be offset by the profit on the
Supa Centa transaction.
In December, Hirequip bought Ready Hire with 13 branches throughout the Waikato, Bay of Plenty, Hawkes Bay,
Manawatu-Wanganui and Thames Valley and has just concluded negotiations to buy a Christchurch general hire business,
Hamill Hire, which operates from Hornby in Christchurch.
“Acquisitions made over the last six months will see a 30 percent increase in the company’s hire business revenues,” Mr
Wong said.
“Integration of the Ready Hire business is progressing well. Hirequip is the largest general hire business in New
Zealand with annual revenue of some $65m and nationwide coverage with branches from Whangarei to Invercargill.
“Further investment in the hire equipment business can be funded in the short-term by the company’s unutilised debt
capacity and longer term by the sale of non-core assets when they reach maturity or the right opportunity is
forthcoming.
“Looking ahead, we intend further growing Hirequip through branch expansion, the development of complementary equipment
hire business activities, and the acquisition of smaller equipment hire providers such as Hamill Hire that have a strong
local presence,” Mr Wong said.
ENDS