Tainui Group Holdings (TGH) today announced that it intends to offer for sale up to 50 per cent of The Base, one of New Zealand’s largest and most successful shopping centres located at Te Rapa, North-West Hamilton.
TGH Acting Chief Executive Chris Joblin said The Base had re-defined the way the people of Hamilton, Waikato and surrounding regions shop over the past decade, and believes a half share will be attractive to a new investor in the dynamic and fast growing Waikato region.
“Following a three month review we believe that now is the right time to seek an experienced joint venture partner and operator to help us take The Base to the next level of excellence. We want to ensure that our retail tenants and shoppers continue to have an experience up there with New Zealand’s best, and to diversify the investments of Waikato-Tainui,” Mr Joblin says.
The Base has previously operated on a 50/50 joint venture arrangement between TGH and The Warehouse Group (2003-2008) and TGH is also a seasoned JV partner through its hotel operations, and recent co-investment in Waikato Milking Systems and Go Bus as part of an ongoing diversification strategy.
“The sale offer will include up to a half-share in the building developments and sub-leases that make up The Base. The underlying land will not be sold and will remain protected in the ownership of Waikato-Tainui under Pootatau Te Wherowhero title,” says Mr Joblin.
The move to sell a stake in The Base will release a significant amount of capital for TGH which it will use to reduce debt and re-invest in a balanced range of investment classes to grow jobs, increase cash returns to further tribal objectives, and extend the land estate for Waikato-Tainui.
“We are proud of the achievements of Waikato-Tainui and TGH in developing and growing The Base and excited by the opportunities this next chapter will bring for the continuing success of The Base, and for TGH to take the next steps towards a balanced investment profile for Waikato-Tainui,” Mr Joblin concluded.