Tainui war-chest at $100 mln after shedding Ryman stake Wednesday, 13 July 2011, 4:11 pm Article: BusinessDesk Tainui

war-chest at $100 mln after shedding Ryman stake by Paul McBeth July 13 (BusinessDesk) Tainui Group Holdings, which manages the commercial interests of Waikato-Tainui Te Kauhanganui Inc., has about $100 million of headroom after selling its 4.5% stake in retirement village operator Ryman Healthcare Ltd. and extending its bank facilities. Chief executive Mike Pohoi told BusinessDesk Tainui has cash on hand after selling the stake in Ryman for about $58 million, a profit of some $21 million on the purchase price three years ago, and lifting its bank facility $50 million to $250 million. After extending the debt facility, we had around $50 million of headroom, and with the sale of the Ryman stake, that takes it over $100 million, he said. The proceeds from the Ryman sale will help fund Tainui s growing investment exposure to the Base retail property development in Te Rapa and Auckland International Airport s Novotel Hotel. We re well-positioned to lay off debt and if we can lower our interest costs, that s a good thing, Pohoi said. Still, the increased cash-flow leaves the door open for Tainui to jump into any good opportunities, including the potential sell -down of state-owned enterprises, though the price would have to be right for it to get involved, Pohoi said. We ve all got to be realistic that these assets will be sold at a mar ket price. There s not going to be any immediate windfall, he said. We re being realistic about what these assets might offer. The government wants to raise as much as $7 billion by selling down minority stakes in electricity retailers Genesis Energy, Meridian Energy Ltd., Mighty River Power Ltd., coal miner Solid Energy and airline Air New Zealand Ltd.

The original Ryman stake was bought to diversify Tainui s investment, but property-related investments are increasingly our core, Pohoi said. The iwi is seeking resource consents to develop retail and office space the northern 12 hectares of Te Rapa, having completed the southern retail section. Pohoi said it would probably be another five years before the Base development was completed. (BusinessDesk) 16:02:12