4 Oct 2011

Property value drop dents Ngai Tahu's profits

6:29 am on 4 October 2011

Ngai Tahu's property portfolio has taken a direct hit from the Christchurch earthquake.

The South Island iwi has released its annual report showing the value of its investment properties fell by $17.86 million.

The bill for damage to the tribe's buildings is $9.32 million.

Repairs are being carried out, but the iwi won't receive an insurance payment until the next financial year.

Despite the effects of the quake, Ngai Tahu Property's gross earnings rose a fifth to nearly $24.5 million.

It credits the strength of its investment portfolio to "premium quality tenants" such as the Crown occupying police stations in Christchurch, Dunedin and Queenstown.

Looking ahead, Ngai Tahu says there are significant development opportunities in the commercial and residential sector in Christchurch, with the devastation of the CBD and thousands of homes damaged or destroyed.

Across the Ngai Tahu Holdings Group - comprising Capital, Property, Seafood and Tourism - net profit slumped to $15.89 million from nearly $43.5 million for the year before.