30 Jul 2010

Tainui Group Holdings back in profit

4:39 pm on 30 July 2010

Strong investment returns and tight cost controls have helped to put the commercial arm of the Waikato-Tainui iwi back in the black.

Tainui Group Holdings made just over $34 million in the year to the end of March.

It's a turnaround from a loss of $27 million last year, when the company was hit by asset write-downs.

The company's $15. 6 million operating profit is up $3.7 million from 2009.

Tainui Group chief executive Mike Pohio says the result is due to strong cash flows from investment properties, and tight cost management.

Mr Pohio says the opening of the first stage of a $120 million shopping mall, Te Awa, at the former Te Rapa base complex on Wednesday night and its investment in Ryman Healthcare, also played a big part.

A dividend of $10 million has again been paid to Waikato-Tainui.

Te Arataura chair Tukoroirangi Morgan says Waikato-Tainui is undeniably a growing economic force.

He says the shopping complex will be a landmark commercial development for the tribe.

Eventually, it will have 770 fulltime employees and another 760 part timers.

Waatea News reports Tainui Group Holdings has also announced plans to develop an inland port on land it owns at Ruakura, near the rail link to the port of Tauranga.