TGH Acquires 100 % of ‘The Base’ Retail Complex

Media Statement Tuesday 26 June 2007

For immediate release

TGH Acquires 100 % of ‘The Base’ Retail Complex

Tainui Group Holdings Ltd (TGH), the commercial arm of Tainui, is to acquire 100 % ownership of ‘The Base’ retail complex.

TGH is buying the 50% share it does not own from The Warehouse Group, over which it has pre-emptive rights. The two companies formed a joint venture in 2003 to develop the site.

The Base first opened for business in 2005 with The Warehouse as its anchor tenant. When complete, the $100 million development will total 60,000 square metres of retail space.

The sale takes effect on 27 July for $37.4m.

“We’re delighted to be moving to full ownership,” said Mike Pohio, Chief Executive of TGH. “The Base is a hugely popular shopping destination, and has changed the nature of retailing in the region.”

He says the Base has been a major commitment for TGH over the past five years.

“The company put a lot of thought into making best use of the strategic location of the site, at the city’s northern entry point.

“Since coming up with the bulk retail concept, we’ve been one half of a successful partnership, developed The Base into a high quality asset and now successfully negotiated this acquisition.”

He said that while the joint venture agreement still had two years to run, the timing of the sale suited both parties. For the future, Mr Pohio said that TGH would be maintaining the momentum of development at the site, which he expected to be completed within the next three years.

“We would like to take this opportunity to thank The Warehouse Group for the very positive and constructive relationship we have had with their Board and management team over the past four years.

“Without the personal support of Stephen Tindall, Founder of The Warehouse and non-executive Director, the Base may not have happened. He was totally committed to the idea of a joint venture concept from the start, and by making The Warehouse the anchor tenant, ensured that the concept became a reality,” he said.

“Since late 2004, Ian Morrice, Group Chief Executive and Managing Director, has also been instrumental in ensuring the continued success of the partnership.”

The Chairman of Tainui, Tukoroirangi Morgan, also welcomed the purchase.

“When it was conceived, The Base was a very ambitious project, both physically and financially. It has since grown to become one of the largest retail developments in the whole country. I don’t think you can underestimate what’s been achieved.”

“This purchase further enhances the credibility and financial strength of our commercial arm, which in turn benefits all our people.”

ENDS

Note to Editors:

The site of The Base at Te Rapa, was part of the Waikato-Tainui Raupatu (land confiscation) Settlement with the Crown in 1995.

In 2003, TGH entered a 50/50 joint venture agreement with The Warehouse Group to develop “The Base”, a $100 million bulk retail complex. The Base Te Rapa Ltd was established as the vehicle for the development. In conjunction with the agreement, TGH leased a part of the site (the former transport centre) to The Warehouse Group to develop a flagship Warehouse store.

Site development commenced in 2004, with a ground-breaking ceremony in August of that year. 17 ha of the site was developed in the first stage, and in July 2005 the Base was officially opened by Te Arikinui Dame Te Atairangikaahu, with the Prime Minister the Rt Hon Helen Clark present.

Apart from The Warehouse, The Base has sofar attracted other retailers that include: Arbuckles, Baby City, Bond and Bond, Briscoes, Cotton On, Dick Smith Electronics, Dress Smart, Mitre 10, New Zealand Post, Noel Leeming, North Beach, Number One Shoe Warehouse, Postie Plus, Rebel Sport, Shantons and Whitcoulls.

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