March 04, 2014
Iwi forest stake high quality
Six central North Iwi organisations are savouring the feeling of being part of New Zealand’s largest forestry business.
Kakano Investment Limited Partnership, which brings together Ngati Rangitihi, Ngati Raukawa, Ngati Whare, Te Arawa and Tuwharetoa interests, has secured 2.5 percent stake in Kaingaroa Timberlands from the New Zealand Superannuation Fund.
It means they are no longer just the landlord as a result of the 2007 Treelord settlement, but they also get income from the trees.
Chief executive Alamoti Te Pou says the deal has taken a long time to come together.
"Iwi historically are conservative with our investments. In some cases we have been led astray to the wrong kind of investment by the wrong type of advisors. I think Kaingaroa Timberlands was such a good investment and the quality of shareholding was of sufficient strength that it helped us overcome those challenges," he says.
Mr Te Pou says while Kakano is a minority shareholder, it may explore ways to increase its stake in future.
The New Zealand Superannuation Fund remains the largest shareholder with just under percent, followed by a Canadian pubic sector superannuation fund with 30 percent and a Harvard University fund with 28 percent.
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