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

 


NZ Super Fund trims stake in Kaingaroa as six iwi buy 2.5%

NZ Super Fund trims stake in Kaingaroa Timberlands as six iwi buy 2.5%

March 3 (BusinessDesk) - New Zealand Superannuation Fund has sold 2.5 percent of Kaingaroa Timberlands to six central North Island iwi, giving the underlying landowners to some of the profits generated from the nation’s biggest forestry business.

Terms of the sale weren’t disclosed. The transaction reduces NZ Super’s holding in the forestry business to 38.75 percent from 41.25 percent. The remaining shareholders are Canada’s Public Sector Pension Investment Board with 30 percent and a fund related to Harvard University on 28.75 percent.

Last year, NZ Super had put a value of $945.1 million on its Kaingaroa investment, which includes 190,000 hectares in the central North Island.

The iwi organisations - Ngati Rangitihi, Ngati Whakaue Assets and Te Arawa River Iwi Limited Partnership, Ngati Whare, Raukawa, Te Arawa Group Holdings and Tuwharetoa – have set up a vehicle called Kakano Investment Limited Partnership to buy the Kaingaroa stake.

They are among the eight iwi that make up the Central North Island Iwi Collective that received the Kaingaroa forestry land, accumulated rentals and other assets as part of their settlement with the Crown. Two chose not to invest – Ngai Tuhoe and Ngati Manawa.

Jon Stokes, a communications adviser for Kakano, said each iwi made its own investment decision. The reasons two decided against were complex though may include already having timber assets among their investments, he said.

Raukawa chair Vanessa Eparaima, who has been appointed chair of Kakano, said that because of the size and maturity of Kaingaroa Timberlands’ forestry operations, they would generate immediate cash returns for Kakano.

Harvard beat out China's Citic to buy the Kaingaroa cutting rights from receivership in 2004. The price was not disclosed but was believed to be near US$650 million. The same forest was sold by the Crown in 1996 for $2.2 billion. NZ Super first acquired 20 percent in 2006, a further 10 percent in each of 2007 and 2008 and a final 2.5 percent in 2012.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Consents And Taxes: Trustpower 'very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news