Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Iwi join forces to buy into Kaingaroa Timberlands

North Island iwi join forces to buy into Kaingaroa Timberlands

Six central North Island iwi have joined forces to buy a 2.5% stake in New Zealand’s largest forestry business, Kaingaroa Timberlands. The investment is one of the biggest ever involving an iwi collective.

The six iwi representative organisations, Ngati Rangitihi, Ngati Whakaue Assets and Te Arawa River Iwi Limited Partnership, Ngati Whare, Raukawa, Te Arawa Group Holdings Limited and Tuwharetoa, have formed Kakano Investment Limited Partnership (Kakano) and purchased the stake from the New Zealand Superannuation Fund (NZ Super Fund) for an undisclosed price.

Raukawa chairperson Vanessa Eparaima has been appointed chairperson of Kakano. Ms Eparaima said the investment was a major strategic and commercial step forward for iwi, and a win-win that ensured iwi were involved in the forestry business itself as well as being the land owner.

Ninety per cent of the Kaingaroa Timberlands tree crop is on the 176,000ha of land returned by the Crown to eight central North island iwi in 2008, in the largest single Treaty settlement to date between Crown and iwi.

“Kaingaroa Timberlands is a successful enterprise which provides not only significant annual returns to shareholders, but which now, through our investment, also further enhances iwi participation at all levels of the forestry business,” Ms Eparaima said.

She said there was excitement and pride among iwi in investing collectively with neighbouring tribes in a commercial venture that provides significant ongoing benefits for the tens of thousands of iwi members that the collective represents.

“This investment shows the value in working collaboratively with like-minded and appropriately structured and resourced iwi,” Ms Eparaima said.
“Individually we could not make this deal happen - collectively we have.”

Ms Eparaima says that, unlike most forestry investments, the size and maturity of the Kaingaroa Timberlands forestry operation means immediate cash returns will be generated for Kakano from its investment – a key investment advantage for the collective.

Adrian Orr, Chief Executive of the NZ Super Fund, said he was delighted to welcome Kakano as a co-investor in Kaingaroa-Timberlands.

Mr Orr said there was a strategic benefit to Kaingaroa Timberlands in having the underlying landowners take a stake in the forestry business itself.

“The involvement of Kakano is also consistent with the NZ Super Fund’s strategy to co-invest alongside partners with similar objectives and long time horizons. Iwi are natural investment partners for the NZ Super Fund and our hope is that this deal opens up further domestic co-investment opportunities with iwi and iwi collectives.”

“By pooling their capital and capability, these six iwi have been able to access a sizeable, highly strategic investment opportunity that will benefit future generations,” Mr Orr said. This is an exciting and ground-breaking step forward for New Zealand and for the Maori economy.”

The deal, which was settled on 28 February 2014, reduces the NZ Super Fund’s stake in the forest from 41.25% to 38.75%. The Fund remains the largest Kaingaroa Timberlands shareholder. The other shareholders are the Public Sector Pension Investment Board (30 per cent), a Canadian Crown corporation investing funds for the pension plans of the Canadian public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force; and an affiliate of the President and Fellows of Harvard College (28.75 per cent).

Kaingaroa Timberlands is New Zealand’s largest forestry operation, covering 190,000ha of land located east of the area between Lake Taupo in the south to the Rotorua Lakes in the north. It is widely recognized as one of the world’s premier softwood plantations with attractive growth rates, close proximity to the Port of Tauranga and extensive infrastructure. Kaingaroa is managed by Rotorua-based Timberlands Ltd to international Forest Stewardship Council certification standards (www.fsc.org).

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news