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 Zealands 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 Zealands 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 Zealands best, Mr Joblin said.
Rahui Papa, Chairman of the tribes executive committee Te Arataura welcomed the partial sale, saying it meets the tribes 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 tribes 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 am 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.
For more information on Tainui Group Holdings, visit
Contact for further information:
Jay Louisson
Sonya Haggie

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