6 central North Island iwi have joined forces to buy a 2.5% stake in New Zealand’s largest forestry business, Kaingaroa Timberlands, from the NZ Superannuation Fund.
The parties said the investment was one of the biggest ever involving an iwi collective, but the price hasn’t been disclosed.
The 6 iwi representative organisations – Ngati Rangitihi, Ngati Whakaue Assets & Te Arawa River Iwi LP, Ngati Whare, Raukawa, Te Arawa Group Holdings Ltd and Tuwharetoa – have formed Kakano Investment LP to buy the stake.
Raukawa chairwoman Vanessa Eparaima, appointed to chair Kakano, said the investment was a major strategic & commercial step forward for iwi, and a win-win that ensured iwi were involved in the forestry business itself as well as being the landowner.
90% of the Kaingaroa Timberlands tree crop is on the 176,000ha returned by the Crown to 8 central North island iwi in 2008, in the largest single Treaty of Waitangi settlement for iwi. Kaingaroa Timberlands is New Zealand’s largest forestry operation, covering 190,000ha east of Lake Taupo & the Rotorua Lakes.
The deal, settled on 28 February, reduces the NZ Super Fund’s stake in the forest from 41.25% to 38.75%. The other shareholders are both North American – the Public Sector Pension Investment Board (30%), a Canadian Crown corporation investing funds for the pension plans of the Canadian public service, the Canadian Forces, the Royal Canadian Mounted Police & the Reserve Force; and an affiliate of the President & Fellows of Harvard College (28.75%).
Attribution: Joint release.