June 02, 2023
Deft financing unlocks treaty land value
The chief executive of Porirua-based iwi Ngati Toa Rangatira says the only frustration about a deal to buy land under 40 schools was it took too long.
The runanga won this year’s Institute of Finance Professionals’ Debt Deal of the Year award for the deal, which involves a consortium of bank and non-bank lenders putting up $368 million and being paid off through lease payments from the crown.
Helmut Modlik says it took some time to get the crown to agree to Ngati Toa’s formula for exercising its right to buy the deferred selection properties, which it got as part of its 2012 settlement of historic treaty claims.
“When we started the deal interest rates were do low we would have had it all repaid in 10, 12 years. Because the Crown took so long and interest payments went up it’s going to take a bit more than 20 years to do that but that’s all good – the Crown will pay the bills and at the end of that period our iwi will receive those lease payment, or our kids will, forever more,” he says.
Mr Modlik says.
He says other iwi are now looking at innovative ways to access to capital markets.