Watershed Year for Tainui Group Holdings

Media Statement Wednesday 27 June 2007
Embargoed until 8.15am

Watershed Year for Tainui Group Holdings

(TGH Annual Results)

Tainui Group Holdings Ltd (TGH), the commercial arm of Tainui, recorded a net surplus of $64.3 million for the year ended 31 March 2007. The comparable figure for 2005/06 was $69 million.

TGH Chairman John Spencer said that the company was very pleased with the results, despite the slight decrease from the previous year.

“We’ve had a further $61 million growth in our balance sheet and the company is in excellent shape.”

“There were delays on a number of property projects beyond our control, and managed fund returns in 2005/06 were really exceptional, which we didn’t expect to repeat.”

“At balance date we had $378 million in assets, 80% of which was in a diversified property portfolio. We had $53 million invested in managed funds, and the remaining $25 million in a number of fishing ventures.”

“What this means is that we now have the financial base, the expertise and the working relationships to take the company to the next level. We are no longer an emerging company.”

Mr Spencer said that a major focus for the year had been the continuing development of the $100 million bulk retail complex at Te Rapa, Hamilton.”

Known as ‘The Base,’ TGH announced yesterday that it had acquired the 50% share in the project it did not own from joint venture partner The Warehouse Group. The two companies joined forces in 2003 to develop the site.

“The Base is New Zealand’s newest, and arguably best, bulk retail site. It is comparable to Auckland’s Sylvia Park. It reflects the huge growth in Hamilton and the Waikato in recent years.”

Following yesterday’s announcement, TGH’s total assets will exceed $415m.

“We are also well on the way to completing a new Ibis Hotel in the Hamilton CBD, a joint venture with ACCOR and the City Council,” said Mr Spencer.

TGH paid its shareholder, the Waikato Raupatu Lands Trust, a dividend of $10.5 million for the year, just under last year’s $10.65 million.

“The company has now reached the stage where it can provide its shareholder with the certainty of a consistent dividend flow. For the first time since the Waikato-Tainui settlement in 1995, this provides them with the basis for long term social development plans,” he said.

ENDS

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