Land boosts Northland Port Corp's value

1.00pm

Shareholders' funds in Northland Port Corporation increased by $45.09 million after an independent revaluation of 180 hectares of Marsden Pt land.

The increase was the main factor in the jump of Northland Port Corporation's (NPC) total assets from $41,871,579 to $76,480,990 in the 2003/04 financial year.

Chairman Mike Daniel said the revaluation had highlighted the land bank's previously "hidden value" and the foresight of directors in buying the land in previous years.

The revaluation does not include the area for Northland Port Corporation's joint canal and marina development with Hopper Developments Ltd (Marsden Cove Ltd), or any assessment of the enterprise value of NPC's various associate companies and joint ventures operating at Marsden Pt.

Mr Daniel said port-related operations would fluctuate with trade volumes but predicted the medium-term trend would be upward as log and other export trades grew.

NPC directors would therefore maintain their support for the expansion of Northport -- the joint venture NPC/Port of Tauranga company which owns the new port -- to meet expected long-term increases in demand. They would also continue to enhance the value of the landbank through "continued timely development, subdivision and leasing to meet demand".

Mr Daniel said an after-tax surplus of $3.36 million included realised gains of $1.6 million from the sale of a farm property for the canal and marina development.

He said the extended consent process for the project was "very near a successful conclusion". All but one of the substantive objectors, including the New Zealand Refining Company, had settled and agreement with the remaining objector was expected soon.

Mr Daniel said demand for the type of property Marsden Cove would offer had lifted strongly over the past 18 months and the NPC directors now expected higher returns than those envisaged when they first signed with Hopper Developments about three years ago.

They expected to realise the first surpluses from the project in the 2006/7 financial year.

He said the asset rationalisation programme for Northland Port Corporation, started nearly five years ago, was now complete. The assets portfolio now consisted of port-related operations; the port-related landbank; and the coastal marina and waterways development.

- NORTHERN ADVOCATE (WHANGAREI)