Iwi commercial property interests continue to grow
The Ngai Tahu King Edward Barrack development in central Christchurch is one of the tribe's many large commercial assets.
Maori tribal organisations are likely to grow in wealth as the Crown concludes more treaty settlements - and commercial property players need to consider where they will invest.
Bayleys Tu Whenua director Ward Kamo said iwi assets had grown to more than $8 billion among 70 iwi and they had become key partners for people and businesses wanting to invest.
The amount under iwi control will grow with each settlement - and benefit other tribes who have already settled because of a special relativity clause giving them top ups.
An artists impression of the full Ruakura development planned by Tainui Group Holdings. The project includes a inland rail port, industrial warehousing and residential zones.
When the South Island's Ngai Tahu settlement of $170 million was agreed, it was on the expectation the total amount for all tribes would be about $1b in 1994 dollars. The envelope was exceeded in 2012.
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If settlements went beyond this amount, tribes who had settled would be entitled to maintain a proportionate payout through additional payments.
Tainui Group Holdings general manager of Ruakura at the inland port development when earthworks began last year.
At the end of 2017 Waikato-Tainui received an extra $190m, and Ngāi Tahu $180m.
These sums pale into comparison with the amount tribes believe they may be entitled to - for example Ngai Tahu negotiators have estimated historical losses of up to $15b.
They are currently in mediation with the Crown over another payment after another recent payment of $18m.
Crown treaty settlement relativity clauses run until 2044 - meaning the value of all iwi assets will grow with each settlement.
Earlier settlements have shown that tribal organisations favour commercial and residential property investment and development.
Kamo said that in Auckland alone there are 13 tribes in the process of settling.
While they may only be settling for $12m, they have first rights of access to Crown land and are looking for partners.
According to figures collated by economic consultants TDB Advisory, the debt levels of many of the iwi groups profiled were non-existent, with the most active investors, Ngāi Tahu, Ngāti Whātua Ōrākei and Waikato-Tainui, having debt of between 10 and 17 percent – low compared with most New Zealand companies.
Kamo said the two largest commercial property players - Ngāi Tahu and Waikato-Tainui - were an example of a way forward.
"The commercial property sector provides a sound investment option for many, with a steady outlook on growing returns in a growing economy.
"Tougher bank lending criteria will have a role to play in iwi plans. In the current market, those with relatively clean balance sheets will be able to flex their muscles."
Kamo said iwi also tended to look at social and cultural benefits and some assets might not produce commercial returns but supported social development or simply accumulate land for the future.
Waikato-Tainui's commercial arm, Tainui Group Holdings, has commercial assets from Auckland Airport to Kawhia and plans to build an inland port on 480ha in east Hamilton in conjunction with LINX Cargo Care Group and one of its subsidiaries C3 to develop and operate the port.
Ngai Tahu Property has completed commercial and residential property developments over the past two decades in Christchurch, Dunedin, Queenstown and Auckland. Christchurch.
Ngai Tahu Property's landmark development, Christchurch Civic Building - Te Hononga, was opened months before the earthquakes that devastated the city but was relatively undamaged.
Its more recent $110m Pita Te Hori Centre/King Edward Barracks office and retail development in central Christchurch CBD, is another leap forward for the group. Dubbed the most energy efficient office buildings of the rebuild and officially opened last year, the development houses a combination of corporate and Government tenants, including EY, Aurecon, Vero and the Ministry of Education and Ministry of Health.
- Stuff
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