Investment Philosophy & Strategic Partnership
TGH constantly strives for a good balance between commercial returns and holding assets which will have long-term value.
Our need to invest for the long term comes as a result of our need to return a consistent dividend to succeeding generations of our shareholder. In this respect, our planning horizon stretches 50 years out, and we actively seek to identify properties to 'land-bank' for development over this timeframe. We therefore partner well with companies and organisations with similar investment horizons.
Unlike many other companies who respond to market conditions by issuing new shares or bonds, TGH is neither able to raise further capital from its shareholder nor investment funds from the public. This means that the ability to borrow is fundamental to our continued growth, and that we must take great care with each and every investment we make. That said, TGH takes a very conservative approach to borrowings, keeping them to no more than 30% of total assets.
Capital constraints also mean that joint ventures are also a key strategy for TGH, where we seek to complement our assets and skills with those of others, and realise value for both parties. Apart from Ngai Tahu Group Holdings, TGH has significant partnerships with Accor and Auckland International Airport Ltd. We have also developed strong relationships with key advisors and commercial operators.
These partnerships are also crucial to our drive for quality in everything we do.