A group of Hamilton businessman who have openly supported the new state-of-the-art, publicly-funded Waikato Regional Theatre have snapped up multiple buildings near the site.
But they say there is absolutely no link between them and their involvement in the theatre because the buildings were bought well after the project started and they hope to eventually use them to create an arts and culture precinct in the area.
Waikato Regional Property Trust trustee and Hamilton lawyer Scott Ratuki, Foster Goup chief executive Leonard Gardner whose firm is building the new theatre and Edwards White Architects director Brian White are behind two limited partnerships that have bought five commercial premises across from where the theatre is being built within the last 18 months.
Bullish Partnership, linked to Bullish GP Limited whose directors include the three men above along with Hamilton restaurateur Lalit Kumar, owns 131 Victoria St where Bull and Bear is, 8 Hood St where the Code Bar and Night Club is and 12 Hood St which was the former home of the long-standing Cullens restaurant.
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While FUN-D LP, linked to Kowhai Tree Investments whose directors are also Ratuki, Gardner and White, owns Unit 12 within that block of buildings which is where The Bank is.
The four purchases happened between March and November last year and have a total sales value of $7.12m, property records show.
An unconditional contract has also been signed for The Outback building, but this has not settled yet.
Gardner said the buildings have nothing to do with the theatre or Fosters and were “just three mates” who had seen their long-term potential as being transformed into an arts and culture precinct.
Prime Minister Jacinda Ardern, left, at the sod-turning ceremony for the new Waikato Regional Theatre last November. Photo / Mike Scott
He said the friends – him, Ratuki, and White - had some capital after selling half of a building at the north-end of Victoria St a few years ago so when they were approached about buying The Bank and the Code Bar buildings they agreed. They then strategically purchased three others nearby.
“We don’t have any aspirations to do things super quick, but in time this an arts and culture precinct and given our interests in built environment and arts and things – whether it is in 10- or 15-years' time it would be great to see it activated into something that supports that.” They also planned to honour the tenancy agreements some of which still had about 10 years left on them.
Gardner, in his previous role as Momentum chair, played a prominent role in bringing a new theatre to the city and lobbied Hamilton City Council to put $25m towards the project along with a further $5m from Waikato Regional Council. Trust Waikato also granted $15m and $12m came from the Government’s Provincial Growth Fund.
He resigned as chair in February 2020 after it became apparent his firm was in the running for the build contract, which it was awarded the following month. Fosters having the contract is now his only link to the theatre now, he said.
Hamilton law firm Tompkins Wake chair Scott Ratuki, who is a both a lawyer for Foster Group and is a business partner of Gardners, is an unpaid trustee on the Waikato Regional Property Trust (WRPT) that was set up to oversee the theatre build.
Ratuki said even though neither he or his firm has provided advice to Foster Construction in relation to any matters related to the Waikato Regional Property Trust or any other aspect of the theatre project, the fact that he has acted for Fosters is listed on the conflict of interest register and he removes himself from any decision-making relating to Foster Construction.
“From time to time, I and others at Tompkins Wake provide advice to Fosters on other legal matters that have no connection to the Waikato Regional Property Trust or the theatre project. Fosters are well aware that we cannot advise them on anything at all to do with the theatre.”
Ratuki said any assertion that he made use of inside information or had the limited partnerships he’s involved in had an unfair advantage is “simply untrue”. The theatre build had been public knowledge since 2017/18, he said, and the limited partnerships did not buy their first property at the south-end of Victoria St until early 2021.
“This has been a highly public process every step of the way.”
Waikato Regional Property Trust (WRPT) chairman Ross Hargood confirmed Ratuki had declared his involvement with Fosters on the register of interest at the trust’s very first meeting four years ago.
While they had not kept count of how many times Ratuki had stepped out due to a Fosters contractual or legal issue, the fact he is a legal advisor for the group is acknowledged at the start of their monthly meetings.
And while the trust had been unaware of his involvement in buying the adjacent commercial buildings, Hargood didn’t see this as an issue.
“... we are not required to be told of our trustees’ specific business activity where there is no direct connection, and therefore conflict, with the theatre.”
Various parties are buying buildings in that area not just because of theatre, he said, but because of all the numerous development projects either underway or planned.
“Rejuvenation of the CBD has been an objective of the HCC and the business community for many years, buildings being bought and improved is therefore what is hoped for and expected.”
