The eight rich-listers with ties to Hawke's Bay

Hawkes Bay Today

28 Jul, 2016 10:20 PM11 mins to read

The National Business Review's Rich List reveals the country's wealthiest people, with eight of them having ties to the Hawke's Bay. Photo / Getty Images

As well as stakes in some of New Zealand’s most well-known companies, eight on this year’s NBR Rich List also have a stake in Hawke’s Bay. With more than $2 billion in total accumulated wealth, we reveal the eight entrepreneurs and families who are among the richest in the country.

1). Rod Drury - technology - $500 million (down $50 million)

Havelock North entrepreneur Rod Drury has once again topped the Hawke's Bay contingent of the National Business Review's Rich List.

With a net worth of $500 million, the Xero founder was ranked 22nd on the list.

NBR reported shares for the company Mr Drury founded in 2006 remain the primary source of his wealth.

After a dip as tech stocks came under pressure and a spike in November following a $147 million capital raise, the company finished the year the same as it began, with a market cap around $2.6 billion.

In February, Mr Drury used the rebound in his company's share price as an opportunity to sell one million shares for $20.01 each - reducing his stake in the company from 16 per cent to 15.13 per cent, with the sale realising more than $20 million.

Xero followed its usual pattern over the past year, banking on subscribers paying for its online accounting software, with numbers swelling from 475,000 to 717,000 in the 12 months to March, as its annualised revenue hit the $250 million mark.

Its net loss widened to $82.5 million from $69.5 million one year ago.

Earlier this month it was announced Xero would start offering new services as it sought to transform the platform founded on accounting software into the online portal of choice for small businesses.

The company had 717,000 customers as at March 31 with annualised monthly committed revenue of $258 million for its cloud-based accounting software.

Mr Drury also topped the Rich List last year, however a turbulent 18 months prior had resulted in a $220 million chunk carved from his net worth of $780 million in 2014.

2). Cushing Family - investment, farming - $195 million (up $20 million)

The Hawke's Bay-based Cushing family retained a spot on the NBR Rich List.

The family, headed by Sir Selwyn and his son, David, had a net worth of $195 million this year, placing them 75th on the list.

The family's main farming business, Rural Equities, is based in Hawke's Bay - where Sir Selwyn is a resident.

NBR reported the family have gradually increased their stake in the Rural Equities company, whose shares trade on Unlisted, and they now own about 64 per cent, up from about 62 per cent last year.

Rural Equities is diversified with dairying, sheep and beef, deer and arable operations spread across the North and South Islands.

This meant while company revenue took a hit from the dairy downturn, it benefited from an improved market in other areas.

Alongside low debt, proceeds from the sale of shares in Australian farming company Tandou, net asset value per share rose to a record $5.57, up from $5.37 a year earlier, valuing the Cushings' interests about $123 million.

Over the past 12 months the Cushings also increased their stake in NZX-listed agritech and industrial rubber company Skellerup, toward 8 per cent, or about $20 million worth.

Sir Selwyn has served at the highest level of New Zealand business, holding positions such as chairman of Air New Zealand, Brierley Investments, Carter Holt Harvey, Electricity Corporation and Whitcoulls Group.

David is executive chairman of Rural Equities.

3). Lowe Family - agribusiness - $170 million (up $10 million)

Increasing their net worth by $10 million is only one boon in an eventful year for the Lowe family.

Founded in 1964 by the late Graeme Lowe, the Lowe Corporation is the country's largest processor and exporter of hides, skins and rendering material, and now has plants throughout New Zealand under the management of Graeme's son, Andy Lowe.

NBR reported 50 new jobs had been created in the past 18 months, and $5 million would be invested over the next couple of years to expand the Hastings hide processing business by up to 25 per cent.

Among other family interests are a 17 per cent stake in Southland's Blue Sky Meats and a 49 per cent stake in Hawke's Bay Protein, which exports high-quality meal to pet food manufacturers.

In addition to its Hawke's Bay farming operations, the Lowe family is also involved in property development, including a joint venture with the Mackersey family called Lowmac Properties.

That partnership is building the five-star Porters Boutique Hotel in the heart of Havelock North as part of a $25 million retail and commercial office development.

A keen conservationist, Andy Lowe was recognised in the 2016 Queen's Birthday Honours List, becoming a member of the New Zealand Order of Merit (MNZM) for services to conservation.

He is also a driving force behind the 2500ha Cape Sanctuary wildlife restoration project on the Cape Kidnappers Peninsula.

4). Sir Graeme Avery - wine, tourism - $130 million (up $40 million)

It has been another busy year for Sir Graeme Avery, Hawke's Bay resident and owner of Sileni Estates.

This year he has been valued with a net worth of $130 million, up $40 million from last year.

NBR reported a long-term project had come to fruition for him this year, with a promising distribution agreement in China, as well as a new-look label for Sileni Estates.

Sileni has had a presence in China since 2007 but, by gaining a foothold in its market, Sir Graeme's patience could be rewarded with a national distribution agreement with the state-owned China Resources Vanguard Company, which operates 45 high-end supermarkets in 17 cities.

The past year has also witnessed the launch of a new Sileni logo and packaging designed to revitalise the label and strengthen brand recognition.

Established in 1997 with winemaker Grant Edmonds, Sileni Estates now exports to 83 markets worldwide, and Sir Graeme is chief executive and president.

Production has grown from an initial run of 2000 cases to more than 750,000 today, making it one of New Zealand's fastest-growing wineries.

Recognised with a knighthood in 2014 for services to business and sport, Sir Graeme has also been inducted into the Business Hall of Fame.

Before turning his hand to wine, he transformed the medical publishing firm Adis International into a $100 million business and is well known as an enthusiastic and generous supporter of sports at a regional and national level.

5). Jonathan Wallace - property development, investment - $120 million (up $10 million)

After starting his property portfolio at 21, Hawke's Bay developer Jonathan Wallace has retained his place on the NBR Rich List.

His net worth of $120 million this year is more than double what it was in 2014 ($50 million).

The Havelock North-based company Wallace Development has become one of the biggest developers in the lower North Island, growing strongly while the commercial property market recovered from the Global Financial Crisis.

Mr Wallace continues to drive its growth from his Havelock North home. NBR reported the company's extensive property portfolio is reaping the benefits of New Zealand's property boom but the business is concurrently bearing the cost of acquiring new properties.

"Prices are going up, which is good for our existing properties but it makes it difficult to acquire or develop because rent hasn't kept up with the increase in prices and costs," Mr Wallace says.

However, other things are down, including interest rates, which "mitigates the price increase a bit".

"It's been a very good and active year over the last year. We're quite active in the north now, including Waikato and Northland," he says.

Mr Wallace established his business in the 1980s and now has holdings across the North Island with offices in Auckland, Palmerston North, Tauranga and Waikato, as well as Havelock North.

6). McVicar Family - timber, property - $85 million (no change)

The McVicar Family have a milling operation in Christchurch and have made money from the timber business.

The Hawke's Bay based McVicar family has made the Rich List, with a valued worth of $85 million.

NBR reported the family has been increasingly diversifying its interests, which had not changed since the death of Gary McVicar in December 2014. Son John now heads the four-generation strong McVicar Holdings, which started with a sawmilling company on the West Coast.

The McVicars moved to Christchurch and Gary took the reins in 1971, though he had started a career in motor vehicle sales, his lifelong passion. The timber business expanded to Australia and into DIY stores as well as branching out into tourism and property development.

McVicar has invested heavily in the Canterbury Adventure Park, which will be the biggest in the southern hemisphere.

Located on 358ha of the company's forest estate on the Port Hills, it includes more than 100km of downhill mountain bike routes, a 1.8km chairlift that takes people up 435m vertically, 2km of zip lines (flying foxes), rock climbing and a cafe bar seating up to 180.

It is due to open by the end of the year. The stage will involve construction of five lodges and 14 cottages with accommodation for 250.

Their milling operation is still based near the airport in Christchurch helping supply the Canterbury rebuild.

Other businesses controlled by the family include the Wellesley Cruise Ship in Wellington and the Wellesley Resort in Fiji. It also owns a mix of real estate investments in New Zealand and Australia.

7). Craig, Penny Hickson - agribusiness - $55 million (no change)

Making his start at the Whakatu Freezing works, Craig Hickson has become a meat industry innovator, who is worth millions, and owns several processing plants throughout the country.

NBR reported Mr Hickson and his wife, Penny, started Progressive Meats in Hastings in 1981 with six staff working in a lamb-processing facility.

The company, billed as "very Hawke's Bay proud", and principal sponsor of the Magpies rugby team, now employs more than 300 staff and has processing facilities for lamb, beef, venison and rams.

The couple also have holdings in Lean Meats, First Light Venison, Venison Packers Feilding, Hawke's Bay Meat Company and Kelcold cool stores. The couple have a net worth of $55 million.

Last month, as the EY Entrepreneur of the Year Mr Hickson travelled to Monte Carlo for the world final.

Last year the couple expanded offshore, buying a small plant near Llanelli in South Wales to enable a year-round supply of lamb to UK customers.

One of these is Prince Charles' Duchy Organics, which came under fire from British farmers for selling New Zealand lamb through Waitrose supermarkets.

Mr Hickson has a background in science, including a food technology degree majoring in engineering but his forte is in process design.

In 2004 he built a boning room specifically designed to try to maximise carcass yields using an index system.

Mr Hickson entered the Rich List in 2014.

International Rich List:

8). Julian Robertson - $4.9 billion

The second on this year's international NBR Rich List was 84-year-old retired billionaire Julian Robertson.

With a total net worth of $4.9 billion, $3 billion of which is in investment, Mr Robertson has made a considerable impact on tourism, the arts and education since he adopted New Zealand as his second country.

Sir Julian's property portfolio includes The Farm at Cape Kidnappers, making the international investor the region's closest tie to a billionaire.

NBR reported Robertson family interests cover some 6070ha, including three luxury lodges - Kauri Cliffs, the Farm at Cape Kidnappers and Matakauri Lodge.

All are managed by son Jay, 38.

The American philanthropist increased his worth from $3b in 2014 to $4.4b in 2015.

He first moved to New Zealand with his wife and young family in 1978 to write the "great American novel."

It was never published, so he moved back to the US where he launched the Tiger Management hedge fund in 1980. At its peak it had $US22b under management.

Robertson's philanthropy is broadly spread. It mainly covers education, environment and medical research but religion and spirituality are among other issues that have caught his eye.

Each March, two Robertson scholarships worth $100,000 are awarded to New Zealand school leavers to attend Duke University or his alma mater, the University of North Carolina, Chapel Hill.

A significant part of his art collection is now held in the Auckland Art Gallery while the Christchurch earthquake rebuild fund was another large beneficiary of his generosity.