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Transfer of Housing New Zealand Corporation's Tāmaki Housing Stock to Tāmaki Regeneration Company

What is intended to be achieved with this appropriation

This appropriation is intended to achieve the transfer of HNZC properties to Tāmaki Regeneration Company to accelerate the regeneration activities in the Tāmaki area.

What was achieved in this appropriation

A Deed of Transfer was entered into on 4 March 2016, under which HNZC and HNZL agreed to sell 2,873 properties located in the Tāmaki area of Auckland to Tāmaki Regeneration Company, which is a subsidiary of Tāmaki Regeneration Company.

The Crown provided financing for the transfer to Tāmaki Regeneration Company through redeemable preference shares which provide the Crown with a number of veto rights. These rights ensure the protection of Crown value from the other shareholder that did not provide any financing for the transfer. In addition, the Crown holds a call option over the ordinary shares of Tāmaki Regeneration Company which would allow it to take over direct ownership if required to protect Crown value.

As a Crown entity, Tāmaki Regeneration Company is required to produce a Statement of Intent and a Statement of Performance Expectations and report on its performance in its Annual Report. This includes reporting on its performance in managing the transferred assets financed from this appropriation. These documents can be obtained from http://www.tamakiregeneration.co.nz/about-trc/key-documents.

Performance measure Target for 2015/16 Performance for 2015/16
Crown interests in the assets are protected in the transfer to the Tāmaki Regeneration Company. Achieved Achieved
2015
Actual
$000
2016
Actual
$000
2016
Main Estimates
$000
2016
Supp. Estimates
$000
- Capital expenditure 1,631,161 1,300,000 1,631,161
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