The Trust owns property (land with buildings on it) and land only for lease.
Property is leased to commercial tenants under market rent terms for periods varying typically from 1 to 5 years. Tenants include national brand companies like Downers, Farmlands and Stihl as well as a range of local businesses.
Resulting from past decisions the bulk of our land holdings is leased in perpetuity to organisations who have constructed buildings on it for community use or benefit. Ownership of the buildings in these instances does not rest with the Trust.
Tenants include Greytown Rugby Club, Greytown Bowling Club, Royal NZ Plunket Trust and Cobblestones Museum Trust. Rents from this type of tenancy typically provide a lower return on asset value than for property.
For historical reasons, as might be expected, the majority of the property and land we own is located in Greytown. However, amendments in recent times to our governing legislation have allowed us to invest in property elsewhere in New Zealand.
Having taken advantage of these legislative amendments, we also own property located in Pahiatua and Whanganui.
The Trust recently sold its Napier commercial property located at 68 Niven Street for $1.2 million. The Trust also has a cash reserve position at 31 March 2021 year end of just over $3 million. Given the heated commercial property sector, Trustees have been actively exploring what asset class diversification options are open to the Trust outside of commercial property and how that fits within the context of our overall strategy. Trustees at the 29th of September Board meeting resolved to proceed with a proposal from Craigs Investment Partners to invest $4 million into managed funds. This is a huge and positive step forward for the Trust resulting in a more balanced and diversified asset base.
The Trust’s current property portfolio valuations based on fair values as at 31 March 2021 are $10.81 million commercial properties (land and buildings) and $3.4 million community properties (land only). See our website for more information on where these properties are located and who they are tenanted by.