Northland Port Corp [NZX: NTH], which owns half of the Whangarei port operating company, plans to buy the neighbouring marina and commercial complex for $6.95 million, which it intends to develop in stages.
The Ruakaka-based company reached a conditional agreement to buy the 230-berth Marsden Cove marina and 1.7 hectares of land and infrastructure from Hopper Developments, effective from July, it said in a statement. It anticipates the acquisition, which is next to its existing land holdings, will be funded by a mix of equity and bank debt.
"By promoting the growth of new marine service businesses at the marina we plan to stimulate new demand on our land from a range of potential downstream service and retail providers," chief executive Graham Wallace said. "The opportunity exists to make Whangarei Harbour in general and Marsden Cove Marina, in particular, the destination of choice for long-distance yachties arriving in and departing from New Zealand."
In February, Northland Port lifted first-half profit 3.7 percent to $3.8 million on growing cargo volumes at the port, which it expects to exceed 3.2 million tonnes in the full year.
Over the past 18 months the port company has increased storage capacity within the port terminal to more efficiently accommodate logs destined for export, and more development needed to accommodate anticipated future growth in cargo volumes. Initial designs are also being considered for construction of a fourth berth.
The shares, of which Northland Regional Council owns about 54 percent, last traded at $3.03, and have gained 7.8 percent this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- New Chief Executives appointed for Ministry for Pacific Peoples and Ministry for Women
- Auckland University gets share of $215m investment deal for commercialisation
- Youth big winners in Greens' final list
- Moa Group narrows its FY17 loss as revenue continues to lift
- NZ dollar holds near highest in almost 4 months vs Aussie as parity talk re-appears
Most listened to
- "All options are open with private equity," says MediaWorks chief executive Michael Anderson
- Orion chief executive Ian McCrae on his company's full-year result and the year ahead
- Mainfreight chief executive Don Braid on the company's outlook and global reach
- The Green Party has revealed its final list and co-leader James Shaw is upbeat about the party's new look
- Steven Newman talks through Eroad's US progress
- NBR Radio: best of the week ended May 26, with Grant Walker