People will hear TDHL story, says new GM
Timaru District Holdings Ltd’s new general manager is not ruling out the company purchasing more properties.
Frazer Munro, who assumed the role of general manager of the council’s holding company yesterday, said the company was always interested in strategic properties to help expand its multi-million-dollar portfolio of 38 properties.
‘‘It very much depends on the nature of the property, and its type and its location,’’ Munro said.
‘‘I wouldn’t say we’re actively looking as such but if an opportunity arose that might change things.’’
A portfolio summary, released to The Timaru Herald by Munro shows the 38 properties have a land value of $31.1m and a total capital value of $59.9m.
‘‘As TDHL only owns the land in many instances and the tenant owns the improvements, the total capital value is not reflective of the value of TDHL’s ownership.
‘‘A good example of this is 71 Fraser Street which is the new fuel terminal. TDHL owns the land ($2m) but not the improvements (which create the capital value of $6.25m).’’
Among the properties, the bulk of them are near or at the port which have provided substantial strategic and monetary value to TDHL, Munro said.
The company also purchased five buildings in the south end of Stafford St for a combined price of $1.7m in September 2018.
He said the company was still looking for potential buyers for the buildings, but as yet, there had been no formal offers.
‘‘There’s been some cheeky interest but nothing set in stone yet.’’
The company is also in negotiation for a sale and purchase agreement with Auckland-based developer Redwood QT group regarding the Showgrounds Hill site at Evans St (State Highway 1) to turn it into a retail centre.
The entire site, which TDHL purchased in 2017, has a collective land value of about $8m.
Munro, the first general manager for TDHL, said his roles would be wide-ranging, including looking after the property portfolio, strengthening relationships with Alpine Energy and PrimePort, overseeing the monthly financial reporting, and working on the annual report and statement of intent.
TDHL has shareholdings in Alpine Energy (47.5 per cent) and PrimePort Timaru (50 per cent).
Munro said it was ‘‘up to the directors’’ of Alpine Energy whether they would produce a dividend for the coming years, despite a Commerce Commission ruling saying the lines company must reduce its revenue and increase its capital expenditure.
Munro, who was previously the development manager with the district council, said he was looking forward to ‘‘telling the story’’ of TDHL to the public.
‘‘I’ve got a strong interest in letting people know how it contributes to the community.’’
From the 2017-18 to 2019-20 financial years, TDHL has paid a dividend to the council ranging from $2.65m to $2.75m.
In 2019, a MartinJenkins review undertaken on TDHL said the administration and executive requirements of TDHL had outgrown the initial model of parttime support that was being provided by various district council officers.
TDHL chairman Ian Fitzgerald said it was ‘‘with this in mind’’ that Munro had been appointed as general manager, to provide ‘‘an efficient, effective and integrated service’’ to the TDHL board.