Te Rua Kirikiri

This project was not a major focus during 2008 and early 2009 due to adverse market conditions. However, both ourselves and Retirement Assets Ltd (RAL), our Pacific Coast Village partners, are now working towards a proposed Heads of Agreement, which will set out the broad commercial terms that will allow us to progress this development.

Key McConnell Property Ltd staff and I met wth a potential tenant for the Truman Lane property. It is too soon to know whether we will be able to reach an agreement that suits all parties. By early to mid 2010 we hope to have made enough progress to consider commencing the first stage of the industrial development on the 6-hectare block next to Trustpower. Prior to any development, we will hold a meeting with shareholders to seek the approvals necessary to proceed.