Notes to the Financial Statements

Note 25: Leases

Operating Leases as Leasee
(a) Leasing Arrangements

Final Expiry 2010 Actual Commentary
Property Leases $000
Waikato-Tainui Campus Land In perpetuity 2,012 Subject to lease condition
Tauranga Campus 2012 to 2025 542 5 Separate Leases
Ruakura Satellite Campus 2011 to 2013 375 4 Separate Leases
Other Hamilton Leases 2011 to 2023 215 5 Leases
Other 2011 -2017 122 5 Leases
 
Equipment Leases 2013 to renewable 982 3 Leases
Total 4,249

The University leases the land for the Hamilton campus from Tainui Group Holdings Limited. The use of this land is restricted to tertiary education, research or any other activity permitted by the rules of the Regional and District plans or by a Resource Consent. The University may sublet up to 25% of the land for periods of no longer than 10 years.

The University has entered into a Master Lease agreement with a Financier for the financing of individual student technology equipment. The University is indemnified against any default payments or any breach of any covenant by a student to repair or to return the Equipment to the Lessor.

The University has entered into a prepaid lease agreement. The future aggregate minimum lease payments under the non-cancellable operating lease are $150,000 not longer than 1 year, $600,000 longer than 1 year and not longer than 5 years, and $262,500 longer than 5 years. These amounts will be expensed through the Statement of Comprehensive Income in the relevant periods.

The future aggregate minimum lease payments payable under non-cancellable operating lease are as follows:

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
(b) Non-cancellable operating lease payments  
Not longer than 1 year 3,798 3,381   3,798 3,381
Longer than 1 year and not longer than 5 years 9,803 9,882   9,803 9,882
Longer than five years 61,883 63,895   61,883 63,895
  75,484 77,158   75,484 77,158

(c) Sub-leases

The total minimum future receipts that the university expects to receive from its tenants on leased land is $8.980M, (2009 $10.532M). The minimum renewal periods range from 1 to 36 years.

Lessor Disclosures

Operating Leases as Lessor

(a) Leasing Arrangements (Receivables)

Operating leases relate to shops on campus, campus land and residential premises adjacent to the University. Lease terms are for terms of between 2 & 49 years with various options to renew. The lessees do not have the option to purchase at the expiry of the lease period.

The future aggregate minimum lease payments to be collected under non-cancellable operating leases are as follows:

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
(b) Non-cancellable operating lease receivables  
Not longer than 1 year 568 725   568 725
Longer than 1 year and not longer than 5 years 1,605 2,026   1,605 2,026
Longer than five years 7,243 8,446   7,243 8,446
  9,416 11,197   9,416 11,197

No contingent rents have been recognised in the Statement of Comprehensive Income.



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