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

 


RESEND: Super Fund trims stake in Kaingaroa as iwi buy 2.5%

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

(Fixes garble in lead)

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 access 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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news