Government buys Westhaven Marina to sell to Auckland City

10.08am

The Government is the successful bidder in the tender process for Westhaven Marina and has registered an option to buy Hobson West Marina, with the intention of selling both marinas to Auckland City.

The city will buy the marinas, subject to its consultation process, and with a requirement that the marinas remain in public ownership.

"The land at Westhaven is to remain in perpetual public ownership, so there is absolutely no doubt about continued public access to the facilities at Westhaven Marina such as the boat ramps," Associate Finance Minister Trevor Mallard said in a statement this morning.

"Auckland City will also need to consult with the Crown and other stakeholders if it wishes to develop the land at Westhaven further."

Mr Mallard said the Crown would pay Ports of Auckland $52 million plus GST for Westhaven, with the option to purchase Hobson West for $2 million plus GST.

The final net cost to the crown following the sale to Auckland City would depend on negotiations with the council and also on the council's public consultation, but was expected to be $8-10 million.

The sale to the Crown will be completed by June.

"The outcome is very pleasing," said Ports of Auckland Chief Executive Geoff Vazey.

Mr Vazey said that the Government's bid for Westhaven Marina at $52 million was the most attractive, with the particular benefit of being unconditional.

"We are satisfied that this is a fair market price for the marina," Mr Vazey said.

The Government is expected to confirm the purchase of Hobson West Marina next week.

"We have been delighted with the interest in the tender process, both from New Zealand and offshore parties," Mr Vazey said.

Auckland mayor John Banks said the city's tender bid was $44m -- $10m below the government bid.

However, he said the city could never have hoped to have put in a commercially viable bid and without the support of the Government, the marinas would have been sold to foreign investors.

He said the city opted to go alone on the tender rather than involve the other regional authorities that make up the Auckland Regional Council.

"Auckland City in its finest traditions is out in front with generosity securing assets for greater Auckland ratepayers."

He said it was gilt-edged real estate and the thought of it falling into the hands of foreign investors for high rise buildings was "frightening."

He said while it may appear expensive today, in 100 years it would be relatively cheap.

Ports of Auckland shares were placed on a trading halt ahead of the sharemarket opening this morning.

They were expected to resume trading at 10.30am. They last traded at $7.45.

Read more in our Marine News section