War chest ready for expansion, says Trans Tasman CEO

Property investor Trans Tasman Properties says it has a healthy war chest for expansion after spinning off its Asian Growth Properties division earlier this year.

Speaking at the company's annual meeting, outgoing chief executive Don Fletcher said Trans Tasman Properties was in a "sound position" to complete current projects and had the resources to buy "further development opportunities" in its home markets of New Zealand and Australia.

Now based in Auckland it is a much-diminished company after shareholders voted in December to sell 97.5 per cent of Asian Growth Properties via an off-market share buyback, leaving it with just over $100 million of real estate in New Zealand and Australia.

The company returned its headquarters to New Zealand from Singapore this month in line with its new Australasian focus.

Mr Fletcher resigned as CEO in January and will be replaced by executive director Rod Hodge, but will remain on the Trans Tasman Properties board.

Mr Fletcher said the transition from passive investor to active investor was now complete, leaving the door open for further growth opportunities.

"TTP, with net assets of approximately $103 million, low gearing and cash reserves, is ... well positioned to partake in further development opportunities as identified."

Future income would be derived, not from rental income, but the sale of development properties and projects.

- NZPA