Notice Type
Departmental
Notice Title

Notice of Tauranga Social Housing Transfer Transaction

Pursuant to section 50L of the Housing Corporation Act 1974 (“HCA”), we, the Honourable Steven Leonard Joyce (Minister of Finance) and the Honourable Amy Juliet Adams (Minister of Housing for the purposes of the HCA), acting jointly (“Ministers”), give notice that the Tauranga Social Housing Transfer Transaction reached financial close and was settled on 31 March 2017.

In reaching settlement, the following transfer contracts became unconditional on 31 March 2017:

  1. the Agreement for Sale and Purchase of Real Estate (“SPA”) entered into by the Ministers on behalf of Housing New Zealand Limited (“HNZ Limited”), using their powers under section 50E of the HCA, and Accessible Properties Tauranga 2016 LP (“APLP”); and
  2. the Capacity Contract, entered into between the Ministry of Social Development and Accessible Properties New Zealand Limited (“APL”).

The SPA set out the basis on which HNZ Limited would sell, transfer and assign its interests in the 1138 Tauranga properties, and certain assets associated with the ownership of the properties, to APLP (the asset owning subsidiary of APL).

The Ministers’ decision to enter the SPA was made following consideration that the transfer was for the purpose of one or more of the Social Housing Reform objectives in section 50D of the HCA.

The Capacity Contract sets out the terms and conditions by which APL (the Community Housing Provider) must make the properties available and provide services for the provision of social housing and related services in respect of the properties.

Other transaction-related documents were also entered into by the Ministers for and on behalf of HNZ Limited and Housing New Zealand Corporation as part of the transaction. These documents bought into effect the transfer of titles, rights and interests in the tenancies and related assets, assignment of guarantees and warranties, and the registration of encumbrances.

Dated this 12th day of April 2017.

Hon STEVEN LEONARD JOYCE, Minister of Finance.

Hon AMY JULIET ADAMS, Minister of Housing for the Purposes of the Housing Corporation Act 1974.