TGH Confirms Partial Sale of the Base Shopping Centre
Tainui Group Holdings (TGH), the intergenerational investor for Waikato-Tainui, today announced the partial sale of The
Base shopping centre, one of New Zealand’s largest and most successful shopping centres located at Te Rapa, North-West
Hamilton.
TGH Chief Executive Chris Joblin said a 50 per cent stake in The Base shopping centre, including 120 year ground leases
but not the underlying land, is to be sold to New Zealand’s largest listed property company – Kiwi Property– for $192.5
million. Kiwi Property has also made an offer to acquire the balance of The Base for a further $197.5 million (in cash
and shares), which will be reviewed by TGH and Waikato-Tainui in the weeks to come.
“TGH received strong overseas and local interest in The Base during an intensive nine month sales process, and we
believe we have found the right investor to take the shopping centre to the next level of excellence,” Mr Joblin said.
“Kiwi Property, who will also manage the centre, will help us ensure that the tenants and shoppers of The Base shopping
centre continue to have an experience up there with New Zealand’s best,” Mr Joblin said.
Rahui Papa, Chairman of the tribe’s executive committee Te Arataura welcomed the partial sale, saying it meets the
tribe’s financial objectives in order to support its social, cultural and environment development goals. It will also
protect tribal ownership of the underlying land, and preserve the unique Waikato-Tainui cultural elements within The
Base shopping centre.
“No tribal land will change hands. Waikato- Tainui ownership of the underlying land continues to be protected under
Pootatau Te Wherowhero title. Kiwi Property, along with TGH will also protect unique cultural elements such as the Pou
(tribal markers), and bi-lingual signage,” Mr Papa said. “At the end of the long-term lease, ownership of The Base
shopping centre will return to Waikato-Tainui at no cost.”
Mr Papa also noted that TGH had retained one hectare, and secured an option over a further half hectare, in a prime
location at The Base shopping centre for Waikato-Tainui to develop a possible future Whanau Ora centre, which will
provide additional benefits to the people of Waikato-Tainui once completed.
The sale of the 50 per cent stake is due to settle on 31 May 2016.
“During our talks, Kiwi Property has also signalled its interest in acquiring full ownership of The Base shopping
centre. Due to the significance and materiality of this offer, TGH has passed this offer on to the tribe’s executive
committee Te Arataura and the tribal Parliament Te Whakakitenga o Waikato, which will have the ultimate responsibility
to decide on this over the coming weeks,” Mr Joblin said.
The partial sale of The Base shopping centre is part of a concerted and disciplined effort by Waikato-Tainui to
diversify its investments. The sale proceeds will be used by TGH to reduce debt and ultimately re-invest in a balanced
range of investment classes to grow jobs, increase cash returns to further a range of tribal objectives, and extend the
land estate for Waikato-Tainui.
“We are proud of the achievements of Waikato-Tainui and TGH to develop and grow The Base and I’m sure that the
involvement of Kiwi Property will see the centre continue its success under New Zealand ownership and allow TGH to take
the next steps towards a balanced investment profile for Waikato-Tainui,” Mr Joblin concluded.
Deutsche Craigs, CBRE and Bell Gully have been key advisors to TGH on the sale process.
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