Trans Tasman eyes up Asia for AGP spend

By Nick Stride

Friday 13th February 2004

Trans Tasman properties is on the lookout for Asian properties after booking a $40.6 million calendar 2002 profit.

Following the takeover of cash-rich Australian Growth Properties last year the company has $282 million in the bank, debt of $290 million, and $14 million of bonds still on issue.

A capital return was considered and rejected by shareholders at the annual meeting.

Chairman Don Fletcher said the company was effectively geared against its existing investment properties "so there's quite a bit of free cash there."

"TTP has decided to invest that cash countercyclically in the region but that's not to say we're going to rush off and buy assets in Asia.

"But you do start looking at the arbitrage opportunities, especially with the high [New Zealand] dollar and the difference in the cycle between New Zealand and other parts of the Asia Pacific region."

He said TTP was already looking around the Asia Pacific region. There has been speculation TTP's majority shareholder, Hong Kong's SEA Holdings, will launch a bid to take over the company fully.

SEA has been using the 5% a year "creep" provisions of the Takeovers Code to top up its holding to a fraction below 60%.

Mr Fletcher said he was always talking to SEA "but certainly not on shareholder issues."

"I have no knowledge of their planning a takeover, but that's not to say they are not."

The 2003 profit compares with a $1.3 million loss in 2002.

One-offs include a $25.4 million gain on the revaluation of AGP, which TTP bought at a discount to net asset value, and a $6.1 million profit on the sale of 22 out of the 27 lots at the Airpark development near Auckland International Airport.

TTP spent $27.3 million repurchasing 66% of its capital bonds.

Mr Fletcher said buying back the remaining $14 million was a distinct possibility.

Comments from our readers

No comments yet