TTP chief to discuss private deal with board

By Chris Hutching

Friday 5th March 2004

Trans Tasman Properties executive chairman Don Fletcher said yesterday he would talk to his board of directors over the issue of his private investments after revelations he was involved in a multi-million dollar Queenstown development.

He is a partner in the Jack's Pt development with Queenstown developer John Darby and SEA Holdings the Hong Kong-listed, Bermuda-registered majority shareholder of Trans Tasman Properties.

This has led disgruntled minority shareholders to question who Mr Fletcher works for and whether the investment should have been offered to Trans Tasman Properties.

The profits from the development of Jack's Pt over several years are potentially anywhere from $500 million to $1 billion.

Speaking from Sydney where he was on business involving another company in the group, cashed up Australian Growth Properties, Mr Fletcher said he had been offered a stake in the investment two years ago and he had told the Trans Tasman board about it.

He said that at the time Trans Tasman had no interest in investing in tourism- related investments.

"But I'll take the issue to the board of Trans Tasman in the next week or so and have them address it. If shareholders are concerned or confused then Trans Tasman should come out with a clear view. This was a private investment and I reserve the right to do this sort of thing as a passive investor. Should Trans Tasman decide it's interested in this type of investment I'll put it to them [in the future]."

Mr Fletcher said there was no crossover or involvement in any way with Trans Tasman Properties. He suspected that minority shareholders who were critical of him were simply seeking another way of taking him to task.

Over the past few years minority shareholders have taken court action and been highly critical at board meetings of the performance of the company and control by SEA, complaining of unfair treatment.

"There have been some difficulties in communication with minority shareholders in recent times," Mr Fletcher said.

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