Seller says airport stake might appeal to NZ Super fund

Wellington City Council does not have any buyers lined up for the possible sale of 8 per cent of Wellington International Airport but it would like the New Zealand Superfund to have a look.

The council has asked chief executive Garry Poole to investigate selling 8 per cent of the airport.

The council owns 34 per cent.

The sale of 8 per cent would give the council some cash, and allow it to still exercise power whenever there is a vote on a special resolution requiring 75 per cent support.

Mayor Kerry Prendergast said the move was not triggered by any approaches from potential buyers.

"It was just trying to think laterally about where we could look at ways to sell some of an asset. At the moment we are looking at everything we do as we start our long-term community planning process to get our rates increase down."

Wellington-based infrastructure investment company Infratil owns 66 per cent of the airport and it was not commenting on the issue yesterday.

The move by the council was seen as a kite-flying exercise to test opposition. Members of the investment community are interested to know if the move was triggered by an approach by a potential buyer, given that Auckland International Airport attracted interest from Dubai- and Canada-based funds.

The NZ Superfund and Infratil collectively own 10.2 per cent of Auckland International Airport and part of NZ Superfund's stake is managed by Infratil.

Ms Prendergast said she put the idea to councillors last week.

She expected the chief executive to report back in the new year.

If the council decided to go ahead with the idea there would be public consultation.

The council received $5.6 million in dividends in 2007/08 from the airport.

Industry analysts said the council would essentially be selling an income stream without giving up any influence.

The airport has been investing in new facilities, meaning dividends are lower than they otherwise would have been.

The questions raised by this move include who would be a buyer of an 8 per cent stake and is now a good time to sell?

Ms Prendergast said a sale on the open market was an option.

- NZPA