Tainui buys out partner in Hamilton Riverview Hotel
Tainui Group Holdings, which manages the commercial interests of Waikato-Tainui Te Kauhanganui Inc, has bought international hotel chain Accor's 17 percent stake in Hamilton Riverview Hotel, making it the outright owner of two of Hamilton's central hotels.
Accor sold its stake in Hamilton Riverview Hotel, which owns Hamilton's Novotel Tainui Hotel and Ibis Tainui Hotel, to the iwi's corporate unit for an undisclosed amount.
Last October, the tribe's investment arm paid the Hamilton City Council $12 million last year for it 41.4 percent stake, doubling its stake to 82.8 percent. At that valuation it implies the 17 percent stake was worth about $5 million.
Tainui chief executive Mike Pohio said it would be "business as usual" at the hotels and Accor's management contract had been extended by 25 years.
Earlier this year Tainui partnered with fellow iwi corporate unit Ngai Tahu Capital and private investor Pioneer Capital to buy dairy technology manufacturer Waikato Milking Systems for an undisclosed sum. Last year Tainui said it would be taking direct stakes in medium to large private businesses as part of a new investment strategy.
As at March 31 last year, Tainui's corporate arm held assets of $725.4 million according to its 2013 annual report, of which more than 80 percent was in property, including the Huntly and Meremere power stations and its Te Rapa retail centre, The Base.