20 Feb 2014

Christchurch step closer to asset sales

3:35 pm on 20 February 2014

The cash-strapped Christchurch City Council may be getting closer to selling off some of its strategic assets.

The council, which expects to be about $2 billion in debt after fulfilling its rebuild commitments, has announced plans to spend $100,000 on a review of its commercial assets. It has appointed a Wellington-based consultancy, Cameron Partners, to do the review.

The terms of reference include a financial review of the council's investment arm - which has investments in Christchurch airport and the Lyttleton port company, among other things - as well as council-controlled organisations.

Finance committee chair Raf Manji says the review's findings will be fundamental to the city's ability both to meet its cost-sharing arrangements with the Government and to repay its debt.

A Christchurch-based merchant banker, Justin Murray, believes it's highly likely the review will advise the council to sell some of its assets.

"There will be a process of comparing the future returns that could be generated from these assets," he says, "versus the value that may be able to be realised from a selldown or a 100% sale."