Auckland waterfront land off the agenda

By PAM GRAHAM

Shareholders hoping for cash pay-outs from land sales by Ports of Auckland should not hold their breath.

The port, which sold its Westhaven and Hobson West marinas for $54 million in May, is firm it is not planning further sales.

"The company has no present intention to sell any further waterfront property," said chairman Neville Darrow at the company's annual meeting.

The strategy is supported by the company's new 80 per cent shareholder, Auckland Regional Holdings.

"We're not a seller of waterfront assets and are not focused on extracting special dividends," said ARH chairwoman Judith Bassett.

The ARH stake in the port was previously held by Infrastructure Auckland.

ARH has two people on the company's board, Peter Hubscher and Susan Paterson, whereas Infrastructure Auckland had none.

Bassett said ARH regarded the port as an important strategic asset and a profitable investment.

"We're conservative and we're supportive of ports. We intend to get an income just the same as any shareholder would."

Ports of Auckland is regarded as a property play by sharemarket analysts, who believe the new majority shareholder is making up its strategy as it goes along.

"We shall be an intelligent shareholder," said Bassett.

The port's main operations are to the east of the waterfront and many assets to the west, like the marinas, have been divested.

Analysts said halting the divestment programme was probably a port decision rather than driven by the new shareholder.

Port land not needed for operations is worth about $100 million.

The biggest chunk is the 17ha area known as the Western Reclamation.

Darrow told the annual meeting last month that the port was advancing long-term plans for the reclaimed land.

"These commercial assets form part of our strategic portfolio and have potential to provide increased returns and income diversity over the medium term."

Auckland City Council ended up owning the marinas, with the help of the Government, and the council is keen to create more public spaces along the waterfront.

Bassett said running the port was a matter for the company but "if we have an opinion we will convey it".

The ARH has said its directors on the port board are required to act in the best interests of the company and all of its shareholders.