Trans Tasman Properties buys cornerstone stake in Clearwater

By NZPA

Thursday 29th July 2004

Trans Tasman Properties today said it had agreed to buy a "cornerstone" 34% interest in Clearwater Development in Christchurch for an undisclosed sum.

TTP chairman Don Fletcher said today he was very pleased with the investment and excited about medium-term commercial and residential opportunities within Clearwater.

He said TTP was looking forward to working closely with other Clearwater shareholders, John Darby, Michael Coburn and interests associated with Christchurch businesswoman and philanthropist, Diana, Lady Isaac.

Clearwater this week proposed a 1200ha conservation park, six times the size of Christchurch's famous Hagley Park, could be developed on a property adjoining the luxury Clearwater Resort if it was granted planning permission to increase its hotel rooms at Clearwater from 200 to 400 and residences from 30 to 200.

The area, near Christchurch Airport, is owned predominantly by the Diana Isaac Conservation Trust, the Isaac Wildlife Trust and Clearwater.

In May, Clearwater's founders said they were getting out of the hotel business, passing on management of the five star business at Clearwater to Hawaiian operator Outrigger Hotels and Resorts.

Clearwater Holdings, owned by Darby, Lady Isaac and Coburn sold the rights to the hotel business but retained ownership of the $75 million five star resort set in 15 hectares on the outskirts of Christchurch.

The resort has 96 hotel suites, including two storey apartments with private jetties.

On Monday, TTP agreed to sell its partially empty 15-level Citibank Centre office block in Auckland to ING Property Trust for $30.5 million in a deal due to be settled later next month.

And last month TTP incurred shareholder wrath for splashing out $112 million on a building site in Hong Kong.

TTP had bought 2ha of bare land in Sha Tin Town in the New Territories from a subsidiary of supermarket operator Dairy Farm International.

Describing the deal as "a coup", Fletcher said the project had a development timeframe of four to six years and the Hong Kong government had rezoned the land to allow a mix of residential and commercial development.

First NZ Capital research manager Barry Lindsay criticised the deal for being short on details and potentially high risk with much spending yet to come.

Fletcher said TTP was conservatively structured, had little debt and was in a position to make such a bold move which the company was picking would ride an upturn in the Hong Kong property market.

TTP shares, which have traded between 30c and 50c in the past year, were unchanged today at 36c.

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