The New Zealand Superannuation Fund (NZ Super) has sold a 2.5% stake in Kaingaroa Timberlands, New Zealand's largest forestry business, to a collective of six iwi organisations.
NZ Super remains the largest stakeholder in the business, with a 38.75% share. Other major stakeholders include Canadian pension fund, Public Sector Pension Investment Board at 30%, and an affiliate of the President and Fellows of Harvard College at 28.75%.
The group of iwi have called themselves the Kakano Investment Limited Partnership (Kakano), and comprise Ngati Rangitihi, Ngati Whakaue Assets and Te Arawa River Iwi Limited Partnership, Ngati Whare, Raukawa, Te Arawa Group Holdings Limited and Tuwharetoa.
NZ Super chief executive Adrian Orr said pension funds investing next to an iwi collective was a good fit.
"The involvement of Kakano is also consistent with the NZ Super Fund's strategy to co-invest alongside partners with similar objectives and long-time horizons. Iwi are natural investment partners for the NZ Super Fund and our hope is that this deal opens up further domestic co-investment opportunities with iwi and iwi collectives."
He went on: "By pooling their capital and capability, these six iwi have been able to access a sizeable, highly strategic investment opportunity that will benefit future generations. This is an exciting and ground-breaking step forward for New Zealand and for the Maori economy."
Kakano chairperson Vanessa Eparaima said: "This investment shows the value in working collaboratively with like-minded and appropriately structured and resourced iwi. Individually we could not make this deal happen - collectively we have."
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Read more about...
New Zealand Superannuation Fund
, NZ Super
, Kakano Investment Limited Partnership
, Kaingaroa Timberlands
, NZ Super Fund
, Adrian Orr
, Harvard College
, Kakano chairperson Vanessa Eparaima
, Maori economy
, Ngati Rangitihi
, Ngati Whakaue Assets
, Ngati Whare
, Public Sector Pension Investment Board
, Te Arawa Group Holdings Limited
, Te Arawa River Iwi Limited Partnership