Asset values for the commercial arm of Ngāti Whātua Ōrākei dropped 2% in the latest year, with its chairman citing tougher economic times.
Ngāti Whātua Ōrākei Whai Rawa accounts showed last year’s $1.5 billion of assets is now $1.47b in what chairman Chris Gudgeon said had been a difficult year for the economy, businesses and households.
In the 20-page annual report, Gudgeon cited the recession and high interest rates as having a profound impact on all but indicated change was coming: “While there will not be an overnight turnaround, we believe we should see a steady improvement.”
Annual revenue fell from $81.13 million in the year to June 30, 2023 to $61.27m in the year to June 30, 2024.
Chief executive Grant Kemble wrote in the latest annual report that the asset value drop was not unexpected.
“Like many in the sector, we observed a relatively modest decline on paper in the value of our investment portfolio.”
However, this is a generally positive result “consistent with, if not better than, other landowners in the New Zealand property market”, Kemble said.
The underlying operating result after allowing for non-cash one-off items and development margin for the year was pleasing in the current challenging economic environment, he said.
“Particularly pleasing was our revenue, excluding property sales, that increased year on year as we saw the benefits of our joint venture with Precinct Properties, a strategic initiative to increase our yield. Our expenses were up, driven by increased interest expense as the high interest rate environment continued in FY24.”
Property assets include land where apartments were built, commercial offices, retail outlets and other premises, a retirement village and land which is planned to be developed.
Last week, Summerset Group said it had bought land from the hapū on the North Shore at Belmont for a sum not declared.
The report said one of the greatest accomplishments in the 2024 year had been the Hawaiki papa kāinga housing development: 24 places in one-, two- and four-bedroom layouts in terraced homes on the corner of Hawaiki St and Kupe St.
That site sits on the Kupe ridge linking Takaparawhau and Pourewa, which are two significant pieces of whenua (land) for Ngāti Whātua Ōrākei.
Over the last few years, whānau have applied to own whare (houses) within Hawaiki, with all 24 homes now allocated, the report said. “Progress has been steady over the last few years of planning and construction, with the development on track for whānau to move into by Christmas.”
The townhouses were designed by Jasmax and built by Auckland-owned Vivian Construction.
Board members are Gudgeon, Ngarimu Blair, Dane Grey, Tania Povey, Jim Quinn, Ed Sims and Renata Blair.
Ngarimu Blair featured in the Herald’s Whenua series this year, talking about how Ngāti Whātua had gone from being rich in resources and land to becoming virtually landless. A series of land transactions and legal manoeuvres stripped the tribe of nearly all their land, leaving the embattled iwi with only a tiny patch in Ōkahu Bay and a sewer pipe across their urupā (burial grounds), disgorging hospital waste and other raw sewage into the bay.
In the year to June 30, 2022, the Herald reported how the hapu had $1.65b of assets.
In the latest annual report was a section on a large apartment scheme planned on former Unitec land at Carrington.
“We intend to build approximately 500 homes in Te Tumu in 15 stages over the coming years. The project has been enabled by the Crown’s master plan for the area. Having already been granted shovel-ready funding, we are under way with infrastructure work to support the wider development on open spaces like parks. Construction of the first 50 units is expected to begin in June 2025, with the vast majority being three- [to] four-bedroom townhouses,” the 2024 annual report said.
A partnership had been formed with Precinct Properties, “a company which has played a significant role in shaping Tāmaki Makaurau into a city we can all be proud of. As part of this collaboration, we are thrilled to have acquired two buildings in the precinct and are excited to embark on this journey together to enhance the vibrancy of our precinct, Te Tōangaroa.”
What was called Quay Park has been renamed Te Tōangaroa after an application to the New Zealand Geographic Board.
“Te Tōangaroa is the only tangata whenua urban precinct, a jewel in the crown for Ngāti Whātua Ōrākei, situated at the eastern entrance of the city centre. It is the single-largest commercial land asset belonging to the hapū,” the report said.
An annual report by consultants TDB Advisory on Aotearoa’s 10 big post-settlement iwi found had an $8.1b asset base last year, the same value as in 2022 due to the tougher economy and storms which saw returns fall and many entities record financial losses.
It assessed the assets of Ngāi Tahu, Ngāpuhi, Ngāti Awa, Ngāti Pāhauwera, Ngāti Porou, Ngāti Toa, Ngāti Whātua Ōrākei, Ngāti Raukawa, Ngāi Tūhoe and Waikato-Tainui.
The wealthiest iwi which settled with the Crown under Te Tiriti o Waitangi was Ōtautahi-headquartered Ngāi Tahu, with $2.21b in assets – up on 2021’s $1.92b but down on 2023’s $2.28b.
Waikato-Tainui had a $1.52b asset base in 2021, which rose to $1.97b by 2022 but by 2023 was up to $2.20b.
Ngāti Whātua Ōrākei had $1.55b three years ago, which hit $1.6b then fell to $1.57b in 2023, TDB found.
Despite tougher times, all 10 iwi made distributions to their members and those rose lately.
These distributions were mainly for education, marae, housing, health, culture, sports and community service grants. Distributions totalled $235m in 2023, up on the $138m in 2022, TDB found.
The combined assets of the 10 iwi make up an estimated 69% of all post-settlement iwi assets, which TDB estimates to be worth around $11.8b in 2023, up on 2022’s $11.7b.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
A word can change a meaning and that was the case with the NZX statement on Tuesday.