Looking to the Future

New owners found for the
Panmure Historic Hotel

Iconic conference venue in East Auckland adjacent to the Panmure Basin.

Historic pub in the heart of Panmure.

Latest News

New owners found for the Panmure Historic Hotel

New owners found for The Waipuna Hotel & Conference Centre

23 September 2024 Ensuring future community giving

New owners sought for The Waipuna Hotel & Conference Centre and The Panmure Historic Hotel 

24 July 2024 First step towards creating a new enduring legacy of community giving for the Mount Wellington Licensing Trust

04 December 2024 Supports future community giving for Mount Wellington Licensing Trust

Hear from the President and Chair

Mount Wellington Licensing Trust President Troy Elliot and Mount Wellington Trust Hotels Chair Paula Savage explain what’s happening and why, including why this is good for the Mount Wellington Licensing Trust community.

Frequently Asked Questions

MWLT – Mount Wellington Licensing Trust
MWTH – Mount Wellington Trust Hotels
MWCT – Mount Wellington Charitable Trust

 

Last updated 04-12-2024

Panmure Sale Announcement - 4 December 2024

  • LZ Holding Limited.

  • The sale price is commercially sensitive, we won’t be releasing it at this stage.

  • Yes, following the September meeting, the property continued to be marketed while a review of the decision to sell was undertaken.  Mount Wellington Trust Hotels Ltd re-examined the financial and commercial basis for its recommendation to sell and shared the outcome of the evaluation with Mount Wellington Licensing Trust for their consideration and final approval.  The Mount Wellington Licensing Trust Trustees unanimously concluded that the compelling reasons for selling the property remain unchanged.

  • We committed to reviewing the decision to sell, which we have done, in good faith. No promises were made about reversing the decision. The outcome of the review was clear - the compelling reasons to sell remained unchanged. Trustees were unanimous in supporting the recommendation from Mount Wellington Trust Hotels to sell the property.

  • MWLT understands that for the foreseeable future LZ Holding intends to continue operating The Corner Bar, including gaming operations.

  • LZ Holding have indicated they will maintain gaming operations, which means that donations to community causes will continue under the new ownership, subject to regulation by the Department of Internal Affairs.

  • LZ Holding intends bringing in an independent hospitality operator to continue management of The Corner Bar. That means that employment will unfortunately be impacted for our small team of ten employees.  We will be working closely with the team to support them during this transition period.

  • Settlement is scheduled for 31 March 2025.

  • Yes. Following a robust on-market process, we found a buyer and achieved a market competitive price.  The ideal outcome would have seen our staff transfer employment to the new business which we advocated for; however, LZ Holding intend to appoint their own operator and staff which will unfortunately impact our team. We will be working closely with our team to support them during this transition period.

  • It makes possible a much greater level of and more sustainable community giving from Mount Wellington Licensing Trust to support community initiatives and community groups in our catchment.

  • No. Making the decision to sell is within the remit of the role Trustees.  Being elected by the community means we must responsibly make decisions that are in our community’s best interests.

  • Settlement, and transfer of the properties to the respective new owners is scheduled for January and March and shortly thereafter the net sale proceeds will be invested in accordance with newly established investment criteria.

  • Yes.

Waipuna Sale Announcement - 23 September 2024

  • We were pleased to receive eight bids for The Waipuna Hotel & Conference Centre by the end of the marketing period. Six offers were for the business as a going concern, and two were for vacant possession (land).

  • The purchaser is Prime Property Group, a well-known hotel operator.

  • Several factors were important to the decision. Most importantly it was a competitive offer in terms of price and was a ’clean' (unconditional) offer providing all parties with certainty. It was also important that the offer meant the hotel and conference Centre can be sold as a going concern, meaning there will be minimal impact on employees and customers. Prime Property Group are the right owners to take this asset forward to its next phase.

  • The purchase price is commercial in confidence at this time.

  • The buyer has requested confidentiality at this time, and MWLT has agreed to respect this. This is not uncommon in large commercial property transactions such as this.

  • Settlement is currently scheduled for 31 January 2025.

  • No.

  • The property has been purchased as a going concern, meaning it will continue to operate as a hotel and conference centre. It’s a great outcome for our people, our customers and the community.

  • Because the sale is a “going concern” the new owner will employ our Waipuna team on terms no less favourable than they are currently employed.

  • It’s a game changer for us. It means that we can invest the net sales proceeds in less risky, more diversified assets that will generate greater returns, and make community giving possible. MWLT has not been able to do that for many years other than through the Lion Foundation net gaming proceeds from The Corner Bar. It will ensure MWLT is able to support community giving.

  • While we are not disclosing the sale price or the net proceeds for commercial in confidence reasons, we will have a significant sum to invest. The net sales proceeds will generate income that enables significant giving to community causes in our community, something that was not possible previously.

  • It depends on things like how much capital we invest, the investment environment – interest rates and how the stock market performs etc, but conservatively we expect to be able to return at least $1m every year to the MWLT community.

  • Yes we can. And that is something we simply could not do with our assets concentrated in the risky hospitality and accommodation sectors.

  • Extremely. This is the right outcome for the community, and for MWLT and MWTH, who have both worked very hard on making this transaction happen. MWLT will now be able to fulfil its purpose of supporting community initiatives.

  • Yes. We are very happy with the outcome of the sale process.

  • The net sales proceeds will be invested in a diversified asset portfolio, that is less risky than the hospitality and accommodation sectors, and produce greater returns enabling us to deliver on our purpose of community giving.

  • Yes. The MWTH Directors and MWLT Trustees have both the power and the authority to make this decision and were not required to seek approval from, or consult with the community on this matter. Sometimes tough decisions must be made, and making difficult decisions that are the right decisions, is one of the reasons people are elected. Not only did the Trust have the power and the authority to make this decision we had the responsibility to do so.

  • The Trustees had the power and authority to make this decision, and we didn’t need to seek approval from or consult with the community on this matter. In any situation like this there will be a minority opposed to a decision for their own reasons, but that is why Trustees are elected, to make decisions that are in the interests of the whole community. Sometimes Trustees must make tough decisions, and making difficult decisions that are the right decisions is one of the reasons people are elected.

  • Yes.

  • Continuing to operate these properties is not a long term or viable option for MWLT. The operations from the properties have not enabled MWLT to provide returns to the community for many years, and bringing them up to market and seismic standards is beyond the financial position of the Trust. This decision should have been made many years ago. By selling and investing in different assets we will be able to ensure substantial annual community giving, something we have not been able to do in the past. Which is a great outcome for the community.

  • Continuing to operate these properties is not an option. We acknowledge there has been some feedback from a small section of the community, but we don’t believe that their views are representative of the community as a whole. We have a responsibility to act in what we believe is in the best interests of the whole community, which is precisely what we have done.

    Some of the commentary on social media has been personal, out of line, and factually incorrect. Our organisational values do not align with the behaviours exhibited and we have chosen not to engage with those taking a personally offensive approach to a decision that has been made in the best interests of the community.

    We are confident that once the community understands that the property sales ensure sustained community giving for more causes in their neighbourhood, they will be fully supportive. The community has changed significantly over the last two decades. This is why the Trust has asked for a review of its community giving strategy, to ensure that future giving, enabled by a more diversified and profitable asset base, meets the needs of the whole community.

  • It’s not going to change the outcome. The Waipuna Hotel & Conference Centre has been sold and The Panmure Historic Hotel remains on the market. 

    Launching a petition is of course within the rights of the community; however, the decision making process rests with the Directors and Trustees who remain aligned and confident that selling the properties is in the best interest of the MWLT community.

  • We’ll continue to operate Waipuna for the next few months and prepare for a smooth transition to the new owner. We will finalise our investment criteria which will include formally establishing acceptable levels of risk. MWCT will continue working on establishing its strategy and granting policy objectives. As for The Panmure Historic Hotel, the property remains on the market while we continue to look for a buyer.

  • It remains for sale.

  • Yes we did. There were two, but neither were considered acceptable.

  • Yes, for the time being, however the rationale for looking for a new owner has not changed.

  • As long as we need to, until we find the right buyer.

  • At the moment, our focus is on finding a buyer and selling the hotel. This process may take time; however, the rationale for looking for a new owner has not changed.

  • No. The reasons for selling Panmure remain unchanged. We are committed to selling this property, and it remains on the market.

  • No. The Panmure Historic Hotel is not profitable and has not been for many years. There is no guarantee that an investment or development in the site would provide a return on investment that would result in consistent community returns, not to mention it would likely require a level of risk that MWLT is not willing to accept. Hospitality businesses are best placed in the hands of private operators who benefit from economies of scale and efficiencies in running these specialised operations.

  • When we announced the intention to divest the properties, we shared a large amount of information with the community and that information has been publicly available since then. Since putting the properties on the market in July, a substantial amount of work has been undertaken by Directors, Trustees and Management with this being the first opportunity to provide a meaningful update.

  • Yes. CBRE have a well-established policy of donating a portion of their fees to a charity of their choice. The best way for the money to stay in the Licensing Trust area was to elect that the donation be made to MWCT, who will in turn return that money to the community via their community giving strategy.

Asset Sales - 24 July 2024

  • MWLT has approved a recommendation from MWTH to look for buyers for The Panmure Historic Hotel and The Waipuna Hotel & Conference Centre. 

    This will enable MWTH to invest the net sales proceeds in a balanced portfolio, diversifying its assets away from the risky hospitality and accommodation sectors. Diversification will position the group to consistently return profits to the community, which it has been unable to do for some years.

    We’re in the very early stages of the process and for now, it remains business as usual at both The Waipuna Hotel & Conference Centre and The Corner Bar. 

  • This was the only realistic option after considering the future investment required to seismically or competitively strengthen the assets given MWLT’s group financial position and alongside the over-reliance on assets exposed to the risky accommodation and hospitality sectors. This approach will enable an outcome that enables MWLT to achieve its purpose of supporting community donations on an enduring basis. 

  • MWLT exists to make returns to the community. Past, present, and projected future returns from the existing physical assets and business operations have not, do not, and are not expected to enable MWLT to do that effectively. The properties are outstanding assets for the right owners, but MWLT is simply not in a position to make the investment required.

  • The current Trustees are unable to speak on behalf of the decisions made by previous Trustees; however, what is known is that MWLT has faced challenging financial circumstances for many years.

    Proceeding with the sale of the properties now is expected to enable MWLT to have net sale proceeds to be invested in a diversified asset portfolio less exposed to the hospitality and accommodation sectors. This is different than in the past when assets were sold to retire debt and provide working capital for operations.

    This balanced portfolio of assets from the net sales proceeds is expected to provide consistent returns and enable a greater level of community giving on an enduring basis; something that simply isn't possible with the current asset base.

    While a difficult decision to make, it is the right decision for the right reasons.

  • MWTH has sought advice over several years before arriving at the decision to sell the properties. MWTH has worked with independent property advisors as well as appointing a property specialist to the board. A range of independent legal and other professional advice has been considered alongside seismic reports, and quantity survey costings along with considerable work done on modelling future financial forecasts.

  • Trustees are elected every three years to make decisions on behalf of the community and there is no legal obligation to consult with the community before making such a decision. If the Directors or Trustees were to base their decision making solely on the opinions of the members of the public without consideration of all the facts, doing so could be in conflict with their responsibilities as Directors or Trustees.

    With the facts in front of them, all six publicly elected Trustees voted in favour of selling both properties once it was clear that this is the most viable option to enable MWLT to achieve its purpose in the future.

  • MWLT Trustees are elected to make decisions on behalf of the community.  Proceeding with the sale of the properties is expected to enable MWLT to be able to fulfil its purpose of giving to the community, something that simply isn't possible with the current asset base.

    Some members of the public have requested that the decision to sell be reconsidered. MWLT and MWTH considered this request and confirm their originally carefully considered decision to continue with the sale of the land and/or business assets owned by MWTH at Waipuna Road and Queens Road.

    While a difficult decision to make, it is the right decision for the right reasons.

  • Yes. The Waipuna Hotel & Conference Centre and The Panmure Historic Hotel are owned by MWTH. MWTH is governed by six Directors who are responsible for conducting business in compliance with the MWTH Constitution and The Companies Act 1993. 

    The Companies Act prescribes that Directors must manage the company, and they have the sole authority to do so except where the decision must be approved by special resolution by the shareholder, MWLT.

    The sale of The Panmure Historic Hotel is not a major transaction, nor are there other requirements in the MWTH constitution or The Companies Act 1993 requiring shareholder approval for the sale of this property. Therefore, the Directors of MWTH have the sole authority to make decisions regarding the sale of this property.

    The sale of The Waipuna Hotel & Conference Centre is a major transaction as its value represents more than half the value of MWTH’s assets. So, although the MWTH Directors may resolve to sell this property, the transaction must first be approved or be conditional upon shareholder approval. 

    MWLT has six Trustees elected to make decisions on behalf of the community. MWLT is the 100% shareholder of MWTH so there was a requirement for a minimum of four of the six MWLT Trustees (a majority) to vote in favour of supporting the major transaction. All six MWLT Trustees voted in favour of supporting MWTH’s decision to sell The Waipuna Hotel & Conference Centre.

  • The MWLT group is not in a financial position to make the investment required.

  • Selling The Waipuna Hotel & Conference Centre to invest in The Panmure Historic Hotel, or the wider Queens Road site was considered as a part of evaluating options.  The Queens Road site in its existing format has made losses, or not delivered adequate returns for many years.  And there is no guarantee that an investment or development in the site would provide a return on investment that would result in consistent community returns, not to mention it would likely bring a level of risk that MWLT is not willing to accept. Hospitality businesses are best place in the hands of private operators who benefit from economies of scale and efficiencies in running these specialised operations.

    Selling The Panmure Historic Hotel to invest in The Waipuna Hotel & Conference Centre would be a repeat of past decisions to sell assets to invest in The Waipuna Hotel & Conference Centre which current Trustees and Directors do not feel is prudent in consideration of the Group’s overall financial position. 

    Selling both properties and investing the net assets prudently is expected to enable MWLT to consistently provide returns to the community on an intergenerational basis, a truly compelling proposition.

  • MWLT believes it is acting in the best interests of the community.  After careful consideration, it is taking what it considers to be the only reasonable and viable option to secure the future of MWLT and enable it to fulfil its purpose of giving to the community.

  • Absolutely, all six MWLT Trustees were unanimous in endorsing MWTH’s recommendation to proceed with the sale of both properties.  Furthermore, all six MWTH Directors were aligned in making their recommendation to MWLT.  Both entities believe this is the only reasonable course of action to enable MWLT to deliver on its purpose of returning more money to the community.

  • While MWLT appreciates some members of the community may be sad to see ownership of these assets change. Selling the properties will enable a much greater level of community giving, and for MWLT to fulfil its purpose.

    While a difficult decision to make, it is the right decision for the right reasons.

  • MWTH is the owner of the businesses and the properties.  MWTH recommended to MWLT that the properties be sold, and MWLT endorsed the decision. Sometimes Trustees have to make difficult decisions for the right reasons, and this is one of those times.

  • While MWLT appreciates some members of the community may be sad to see ownership of these assets change, MWTH and MWLT have a responsibility to deliver on their purpose and without proceeding with the sale, will be challenged in doing so.

  • The decision to sell was made after consideration of all the facts and the options. It’s not an emotive decision, and we will not be emotive about the buyers that emerge or their intentions for the sites.

    We are seeking the best possible return for these properties which are highly attractive assets for the right buyers.

  • MWLT purchased the Panmure property in 1985 – this is less than 40 years ago which is a short part of the long history of the building.

    A potential buyer will be aware of the heritage protections on the property before committing to purchase.  And they may be in a better financial position to invest in the heritage aspects than MWLT has been.

  • Once the details of the past, current, and forecasted future financial position were fully understood by all current Trustees, and the options and recommendations from MWTH were carefully considered, the Trustees were unanimous in approving the recommendation to sell both properties. While a difficult decision, Trustees are elected to make the right decisions on behalf of the community, and they believe this is the right decision for the right reasons.

Structural / Legislative / Political - 24 July 2024

  • The best map online is on the Auckland Council website – click here to see it.

  • MWLT exists to fulfil the functions prescribed in the Sale and Supply of Alcohol Act 2012.  It may spend or distribute the net profit it makes in performing its functions as a Licensing Trust.

  • MWLT has one wholly owned company subsidiary, MWTH, and one registered charity that it controls, MWCT.

  • MWLT is governed by the Sale and Supply of Alcohol Act 2012 which includes provisions on how a Licensing Trust may convert to a Community Trust. Community Trusts have the same local election process as Licensing Trusts. There are other Licensing Trusts that have converted to Community Trusts and are doing outstanding work in their communities.

  • Licensing Trusts may spend or distribute net profit in performing their functions as a Licensing Trust.

    Community Trusts must apply the net profits that it makes in performing its functions to charitable, cultural, philanthropic, recreational, and other purposes that are beneficial exclusively to the community in the region of the community trust, or it may retain so much of its net profit as it thinks prudent for the purposes of its activities (including any proposed activities).

Donations - 24 July 2024

  • MWCT is in the early stages of setting its new community giving strategy, and this will guide all future donation decisions. 

    We are confident that the outcome of the sale process for the properties will have a significant positive impact on MWLT’s ability to support community giving so the new community giving strategy when complete will be an important guideline.

  • It’s business as usual at The Corner Bar and The Lion Foundation Grants Committee will continue selecting worthy causes to donate to from net gaming proceeds. 

    MWCT is in the early stages of setting its new community giving strategy, and this will guide all future donation decisions. 

    We are confident that the outcome of the sale process for the properties will have a significant positive impact on MWLT’s ability to support community giving so the new community giving strategy when complete will be an important guideline.

History - 24 July 2024

  • Over 90% of the returns to the community from MWLT since 2008 have been funded through net gaming proceeds from The Mount Wellington Foundation (no longer operating) and The Lion Foundation.

  • MWLT financial statements dating back to March 2011 are available here. 

  • The current Trustees are unable to speak for previous Trustees, however the reality is that MWLT has faced challenging financial circumstances for many years, in fact, the original borrowings from the expansion of The Waipuna Hotel & Conference Centre in 1990 have not been fully repaid. 

    The COVID-19 pandemic forced many businesses to look carefully and critically at their operations, how they did business, and how they needed to adapt and change in order to survive.  It was around this time that MWLT first genuinely considered the sale of these assets. More recently MWLT and MWTH have been considering options to address the group’s challenging financial position. Following careful consideration, a recommendation was made by MWTH, which the MWLT Trustees unanimously approved.

Sales Process - 24 July 2024

  • We are in the very early stages of the process, and do not yet know what the outcome of a sale process could look like for either property.  Ultimately, MWLT is seeking to achieve the best possible return for these assets to enable greater reinvestment into the community and are looking to the market, for potential buyers to express interest in these two highly attractive assets.

  • CBRE has been appointed as sole agent for the sale of both properties.  CBRE will market the properties via an on-market campaign, with both properties openly advertised as being for sale.

  • We are in the very early stages of the process, and do not yet know what the outcome may look like for either property.  For now, both businesses, The Waipuna Hotel & Conference Centre and The Corner Bar, remain open and it is business as usual while we work through the sale process to achieving the best possible return for the properties that are both highly attractive assets for the right buyer.

  • The financial position of MWLT has been sub-optimal for many years, and forecasts indicate it is unlikely to significantly improve with the existing asset base. Selling now and investing in a more diversified set of assets is expected to provide better, more consistent, returns to the community than current business operations are forecast to provide.

  • They are very different properties.  Whilst we can’t say for sure, we expect there will be different buyers for each property.

  • This is not a political decision. The decision is based on a detailed review of the past, current, and future potential for MWLT based on its existing assets and business operations and financial position alongside the need to fulfil the purpose of giving to the community. The Directors of MWTH are responsible for conducting business for MWTH and they believe the decision to sell is in the best interests of MWTH. Trustees are elected to make decisions on behalf of the community. If current Trustees continually wait for future Trustees to make decisions, it would be at conflict with their responsibility to act in the best interest of the business and the community.

    The COVID-19 pandemic forced many businesses to look carefully and critically at their operations, how they did business, and how they needed to adapt and change in order to survive.  It was around this time that MWLT first genuinely considered the sale of these assets although records indicate that the Queens Road site was originally considered being sold a decade ago.

What Next? - 24 July 2024

  • We are in the very early stages of the process, and do not yet know exactly what the outcome of a sale process could look like for either property.  MWTH is committed to looking after the teams employed at the venues as best as they possibly can during this period of uncertainty. 

  • We are committed to keeping our people informed throughout this process. Both venues are open, and we are trading on a business-as-usual basis.

  • We have c. 10 employees at The Panmure Historic Hotel and c. 140 at The Waipuna Hotel & Conference Centre.

  • We are in the very early stages of this process, so it is too early to say as this will be determined by the type of buyers and their intentions for the sites.

  • The Waipuna Hotel & Conference Centre is an outstanding venue for conferences and remains open on a business-as-usual basis.  We are taking bookings for all dates and are confirming bookings through to 31 March 2025.  We are committed to ensuring our customers are kept informed of any potential impact on their bookings.

  • We are in the very early stages of this process, so it is too early to say how long the process may take.  In the meantime, it is business as usual at the venues for the foreseeable future. We are taking bookings for all dates and are confirming bookings through to 31 March 2025.

  • No decisions have been made yet; however, the aim is to have a broader range of assets that are less exposed to a small number of asset types.  This is expected to enable consistently returning more to the community.

    A Statement of Investment Policy Objectives (SIPO) is being developed.  This will guide how MWTH invests the net proceeds to ensure consistent returns can be provided to the community on an ongoing basis.

  • It is too early to say as this would be determined by the type of buyer and their plans.

  • The Statement of Investment Policy Objectives will govern how the net proceeds are managed, and it will consider group objectives to ensure consistent returns to the community on an intergenerational basis.  The risk profile agreed in establishing in the SIPO is expected to be significantly less risky than operating in the highly risky hospitality and accommodation sectors.

  • No firm decisions have been made; however, a Statement of Investment Policy Objectives (SIPO) will be developed to establish governance and management guidelines for the investment of net sale proceeds.  The aim is to have a diversified asset portfolio less exposed to the hospitality and accommodation sectors that is able to consistently provide returns that enable a greater level of community giving.

  • We are in the very early stages of the process, and do not yet know what the outcome of a sale process may look like for either property, particularly what a potential purchaser might intend to do with the assets after they have been sold.