2 6
Agriculture
Farms
TGH owns one drystock station and
two dairy farms. Today the three farms
are valued at approximately $22 million
(including Fonterra shares).
The drystock farm, also known as
Hangawera Station, is located near
Morrinsville. It runs 2,000 ewes, 200
cows and approximately 300 trading
cattle. These stock numbers include
approximately 150 bulls that are sold
Investments
Hotels
TGH’s investment in hotels totalled $75
million as at March 2012, a $9 million
increase on 2011 due to the completion
of the
otel,
and its existing shareholder in Hamilton
Riverview Hotel (HRH).
TGH maintains a controlling interest
of 70% of the Tainui Auckland Airport
Hotel Limited (TAAH), whilst
nd
own 20%
and 10% respectively. The investment
in TAAH is reported at cost, of $61
million, which largely represents the
total development costs for the hotel.
Construction savings were achieved
due to rigorous negotiation of supply
contracts. The hotel’s occupancy and
room rates have exceeded initial
expectations in its frst 10 months of
operations since opening in May 2011.
TGH’s investment in HRH was one of
the company’s frst major fnancial
investments in 1998. TGH owns 41%
of HRH whilst Hamilton City Council
(HCC) and
own 41% and 18%
respectively. HRH holds total assets of
$46 million. HRH performed well in
comparison to last year’s occupancy
rates and revenue despite room
rates being slightly lower than 2011.
Performance was affected due to the
fnal stage of room refurbishment
undertaken at the
hich
was completed in September 2011.
Equities
TGH invested in
following the signing of a strategic co-
investment agreement with
n 2008. In July 2011,
TGH divested its entire shareholding in
. This decision was made as part
of a review of other investments with the
outcome to retire debt. A capital gain of
$21 million and $5 million in dividends
were earned on the original purchase of
shares.
Fishing
TGH’s fshing interests total $33 million,
and comprise commercial quota and
other assets allocated to Waikato-Tainui
as a result of the Maaori commercial
fsheries settlement with the Crown.
Under the Maori Fisheries Act 2004,
assets from the settlement could only be
transferred to those entities that met the
prescribed criteria as a Mandated Iwi
Organisation (MIO), and which would be
managed by an approved Asset Holding
Company (AHC).
The MIO for
is
, and
TGH is an AHC.
TGH’s quota investment of $20 million
provides a return of 7.3%. Snapper and
crayfsh continue to provide the highest
value of quota held, whilst the volume of
hoki provides a signifcant contribution
to the total quota held.
TGH has an alliance with AHC’s of
Ngaati Raukawa and Ngaati Maniapoto
to lease out the aggregated quota held
by the three iwi, having ceased to run
an active fsheries operation together in
2008.
WTF holds 5.48% of the income shares
in
, an iwi
owned company which provided a
dividend to WTF of $0.5 million in
December 2011. Separate fnancial
statements are presented for WTF from
250
260
270
280
290
300
310
320
330
total dairy production
(kilograms of milk solids)
2012
325
2011
284
2010
286
2009
266
2008
257
MS/Kg in thousands
Forestry
As a long-term investment in the TGH
portfolio, a total of 795 hectares is
currently planted in trees with a further
1,074 hectares leased out. The trees are
a mix of Radiata Pine and Californian
Redwood. The latter is well placed for the
New Zealand Emissions Trading Scheme.
Effective farm area
by hectares
650
109
Tainui Road
(Dairy)
250
Hangawera
(Drystock)
Hukanui
(Dairy)
Forest
by hectares
374
151
Whatawhata (Pine)
planted 2001-2002
270
Kawhia (Pine)
planted 1996-1997
Waipuna (Redwood)
planted 2005-2007
to the dairy market each year. TGH
employs two full-time farm staff and
is an active manager of this farm. The
two dairy farms are located on Bankier
Road, Gordonton and Tainui Road,
north of Morrinsville. Both are run on a
50/50 sharemilker basis with the farms
collectively producing 320,000 kgs of milk
solids from approximately 1,000 cows.