Ann: GENERAL: AKC: Auckland Council defers retail

• Release Date: 11/10/12 19:09
• Summary: GENERAL: AKC: Auckland Council defers retail bond offer
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AKC
11/10/2012 17:09
GENERAL

REL: 1709 HRS Auckland Council

GENERAL: AKC: Auckland Council defers retail bond offer

11 October 2012

Auckland Council defers retail bond offer

Auckland Council today said it acknowledges further clarification of the law
relating to weathertight properties. In the decision delivered today, the
Supreme Court held that councils owe a duty of care to the owners of all
buildings whether they be residential or commercial. This duty is to
ensure that those buildings comply with the building code.  Until this
decision, there has been some doubt as to whether or not the owner of a
commercial building was entitled to sue a council for damages reflecting the
cost of bringing the building up to standard. Auckland Council's financial
statements include provisions for potential future liabilities for
residential properties with weathertightness issues, but not commercial
properties.

On Tuesday 9 October 2012, Council launched a retail bond offer.  Because of
this decision, Council has decided to defer this offer, and will re-launch
once Council has considered the implications of the decision, including on
its offer document.  It is expected that the relaunched offer will be made in
the near term.

This decision does not impact Council's obligations under its existing bond
issuances or the security over Council's rates that supports repayment of
those bonds.  Council's ability to comply with these obligations is not
expected to be adversely affected.

Ends
For more information, please contact:
Glyn Walters, Media and Public Affairs Manager
Ph: 021 278 6858
End CA:00228363 For:AKC    Type:GENERAL    Time:2012-10-11 17:09:28