Conditional agreement for sale of land around Chelsea Sugar refinery in Auckland, NZ

CSR Limited (CSR) confirmedtoday that a subsidiary has entered into a conditional agreement for the saleof 36 hectares of parkland and lakes around the Chelsea Sugar refineryin Birkenhead, Auckland for NZ$20 million. The land will be sold to the Chelsea Park Trust for use as a publicpark.

CSR has owned this land since theearly 1880s for the operation of the Chelsea Sugar refinery, which haspermitted the public free and open access to its grounds. The transfer of ownership to the Chelsea ParkTrust will formalise that arrangement and secure the property as public parklandfor the future.

The sale is conditional onChelsea Sugar receiving confirmation that it can continue its existingoperations and Chelsea Park Trust obtaining sufficient funds to complete thepurchase.

Regulatory approval must alsobe obtained for the remaining 17 hectare refinery site to be adaptively reusedfor commercial and residential development in the unlikely event the refinerywas to be relocated. The transaction istargeted for completion in mid to late 2006.

New Zealand Sugar Company (ChelseaSugar) is owned 75% by CSR and 25% by Mackay Sugar Co-operative AssociationLimited. The company is New Zealand’sonly sugar refiner and employs over 200 people.