From: Tim Berry
Sent: Wednesday, 30 January 2019 12:27 p.m.
To: EXT Michael Quinn
Subject: Historic sale of state housing in Wairarapa / URGENT MO: DUE 12.30PM TODAY
Good afternoon Mike
Below is an extract from a briefing note about the sale of Housing New Zealand properties in
the Wairarapa in the 1990s.
Please advise if you need more info.
Kind regards
Tim
----------------------------------
Summary of Sale of the Wairarapa state rental portfolio to Trust House in 1999
prepared in June 2012
In March 1999 the Wairarapa state rental portfolio of 541 properties was sold to Trust House
Limited. The properties were located in Masterton, Carterton, Greytown, Featherston,
Martinborough, Ekatahuna, Pahiatua, Woodville, and Dannevirke. At the time of the sale it
was considered unnecessary for Housing New Zealand to provide state housing in
Wairarapa, as there was a relatively low level of unmet housing need. Housing New Zealand
continued to own several Community Group Housing properties in the region.
Trust House was formed in 1998 to operate the business enterprises owned by the
Masterton Licensing Trust. The Masterton Licensing Trust currently has a 75 percent
ownership share in Trust House, while the remainder is owned by the Tararua Foundation,
the Rimutaka Licensing Trust, the Flaxmere Licensing Trust, the Masterton Licensing
Charitable Trust, and Trust House Foundation.
The sale price of $11.5 million was in line with the net book value of $10.2 million and an
independent market valuation by Darroch Limited of $8.7 million to $12.7 million. Housing
New Zealand provided s9(2)(ba)
The sale agreement included a covenant preventing the sale of more than 10 properties a
year for a 5-year period, excluding sales to tenants. The agreement also recorded Trust
House’s intention to honour existing tenancy agreements, provide rental accommodation for
those in need, provide ownership opportunities to tenants, and honour tenure protection in
place for over-55s and those living in modified properties. In addition, Housing New Zealand
provided Trust House with all relevant information held on the properties being transferred.
In December 1998 both Housing New Zealand and Trust House wrote to the tenants
affected by the sale, and made a commitment that tenants affected by the sale would not
experience reduced services. Following the sale Housing New Zealand performed a
monitoring role to ensure that a high percentage of low income families and priority
customers were being housed. Trust House also employed two Housing New Zealand staff,
which helped to ensure tenancy management continuity.
Tim Berry
s9(2)(a)
Advisor
DDI:
Government Relations
E-mail: [email address]
Freephone: 0800 801 601 | Mainline: (04) 439 3000 | Housing New Zealand Corporation
Te Kaporeihana ā Whare o Aotearoa | PO Box 2628 Wellington 6140 | New Zealand Government
Building lives and communities by housing New Zealanders.
He pukenga wai, he nōhanga tāngata; he nōhanga tāngata, he putanga kōrero
From: Mike Quinn [mailto:[email address]]
Sent: Wednesday, 30 January 2019 11:06 a.m.
To: GRU Jobs
Cc: Rachel Kelly
Subject: Historic sale of state housing in Wairarapa
Importance: High
Hi
We have a media enquiry about public housing provision in the Wairarapa. To assist with this, can
we have background information on the sale of the state housing stock in the late 1990’s, please –
there have been a number of briefings on this in recent years so just the key info from these will
suffice.
Can I have this by 12.30pm, please?
Thanks
Mike
