Properties Likely to Create Interest
29 October 2010
Ngāi Tahu Property (NTP) will begin to market 18,250 hectares of rural land leased to forestry companies located in the lowland Canterbury foothills this month, in one of the first major commercial actions to be taken under the new Te Rūnanga Group Investment Policy.
Interest in the investment properties is expected to be considerable, given that they provide investors with low-risk, long-term, and indexed Rental Income totaling $NZ 1,011,552 per annum.
The seven investment properties offered for individual sale have land areas ranging from 397 to 6,344 hectares and have rental incomes from $NZ 23,250 to $NZ 414,900 per annum. The investment properties are located in the Canterbury foothills and include locations such as Ashley, Hanmer, Mt Thomas, Okuku, Omihi and Oxford.
NTP Chief Executive Tony Sewell says the Ngāi Tahu’s rural investment portfolio currently represents 1/6 of the Tribes commercial asset base. "Quite simply we are looking to diversify the overall portfolio in line with the Tribes investment policy.
"It is a hard decision on our part, but I think the market will be pleased because people know that we hold long-term, secure investments so whenever we look to sell, there is always keen interest."
Te Rūnanga o Ngāi Tahu Kaiwhakahaere Mark Solomon says the iwi has a number of policies in place that guide the decision making of those that lead its commercial entities, including the Group Investment Policy Framework, finalised this year, which encourages Ngāi Tahu Holdings Corporation and the subsidiaries to diversify the investment portfolio. "All our subsidiaries will, at times, have to make decisions to sell assets in order to reinvest in a manner that is consistent with our Investment Policy. We see diversification as being essential to secure the tribe’s future financial success."
Tony Sewell says Ngāi Tahu Property has begun to widely market the investment properties in order to attract the attention of all potential buyers. The opportunity to acquire significantly landholdings with secure income streams, in prominent and attractive locations is extremely rare.
Tony Sewell says likely buyers would include strategic portfolio investors who as yet, do not have rural sector investment exposure. "An investor may even want Ngāi Tahu Property to keep on managing the properties on their behalf, something that we are quite open to, given our extensive experience."
Further information for potential buyers is available from Edwin Jansen, Rural Manager, Ngāi Tahu Property. (firstname.lastname@example.org). Alternatively, an information memorandum will be available off the Ngāi Tahu Property website: www.ngaitahuproperty.co.nz from 2 November.