78
18 TE WHEROWHERO TITLE PROPERTIES (CONTINUED)
T. Arnott from CB Richard Ellis Limited valued properties at fair value of $45m as at 31 March 2016 (31 March 2015: $33m) using
a mixture of market evidence of transaction prices for similar properties, capitalisation and discounted cash flow approaches.
D.J. Saunders from Telfer Young (Waikato) Limited valued properties at fair value of $18m as at 31 March 2016 (31 March 2015:
$12m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flow approaches.
P. A. Curnow from Curnow Tizard Limited valued properties at fair value of $5m as at 31 March 2016 (31 March 2015: $5m) using
a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and discounted cash
flow approaches.
All valuers are independent registered valuers not related to the Trust. All valuers hold recognised and relevant professional
qualifications and have recent experience in the locations and categories of the investment property they have valued.
Te Wherowhero land titles located at The Base and the University are subject to operating leases with Tainui Group Holdings
Limited. The sub-lessors interest is held within investment properties (see note 17).
(b) Recognition and measurement
Te Wherowhero title is the mechanism set up to protect the title of lands in the tribal estate. The benefits and the land in Te
Wherowhero title are for all Waikato-Tainui and the land cannot be succeeded to, sold, alienated, mortgaged or gifted without
adherence to a process to obtain the mandate of the voting beneficiaries or their representatives and unanimous consent of the
Custodial Trustees.
Te Wherowhero investment properties comprise of properties located at Kawhia, Onewhero, 192 The Terrace in Wellington,
Hopuhopu, The Base and the University of Waikato, Hamilton. Te Wherowhero investment properties are carried at fair value,
representing open market value determined by external valuers. Changes in fair value are recorded in the statements of
comprehensive revenue and expense.
Te Wherowhero property that is not investment land is not leased and is recorded at historical cost.
As at 31 March 2016 (and 31 March 2015), the title is protected by the Custodial Trustee Kiingi Tuheitia.
The custodians of Te Wherowhero title are the Head of the Kaahui Ariki and two successors who are yet to be elected.
19 INTEREST BEARING LIABILITIES
Consolidated
2016
$'000
2015
$'000
Secured
Bank loans
209,052
4,460
Total secured current interest bearing borrowings
209,052
4,460
Secured
Bank loans
41,300
263,634
Total non-current interest bearing liabilities
41,300
263,634
Total interest bearing liabilities
250,352
268,094
Total interest bearing liabilities for the Trust is net of prepaid borrowing costs of $0.03 (2015: $0.03m).
Tainui Group Holdings has a multi option credit facility agreement with Westpac New Zealand for $25m which matures on 31
December 2016 (2015: $25m). This facility has not been drawn at balance date (2015: $4.5m). As part of the facility arrangement,
Tainui Group Holdings has agreed to a negative pledge with Westpac New Zealand. In essence, this means Tainui Group
Holdings will not enter into any transaction or agreement that will increase Tainui Group Holdings indebtedness without
Westpac New Zealand’s prior consent.
WAIKATO RAUPATU LANDS TRUST
Notes to the financial statements
FOR THE YEAR ENDED 31 MARCH 2016