The Base up for sale

The Base Shopping CentreTainui Group Holdings (TGH) plans to put up 50 per cent of The Base, one of New Zealand’s largest and most successful shopping centres located at Te Rapa in North-West Hamilton, for sale.

TGH acting CEO, Chris Joblin, says The Base has redefined the way the people of Hamilton, Waikato and surrounding regions have shopped 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 NZ’s best, and to diversify the investments of Waikato-Tainui,” Joblin says.

The Base previously operated on a 50/50 joint venture arrangement between TGH and The Warehouse Group from 2003 until 2008.

TGH is a seasoned joint venture 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 subleases 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 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,” Joblin concludes.

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