Sharechat Logo

Iwi collective beats out foreign bidders to buy 100ha of Te Puke kiwifruit orchards

Wednesday 27th June 2018

Text too small?

Three North Island iwi have pooled their resources to buy three kiwifruit orchards in Te Puke for an undisclosed sum in a tender that was pitched to foreign buyers.

Rotorua-based Te Arawa Group Holdings and Rotoma No 1 Inc teamed up with Whakatane-based Ngāti Awa Group Holdings to buy the Te Matai, Pacific Gold and Coachman orchards, spanning 98 canopy hectares and expected to produce 1.3 million trays of SunGold G3 and Hayward kiwifruit in roughly equal percentages, or about 0.9 percent of Zespri Group's total New Zealand supply. That implies payments from Zespri of between $11.4 million and $12.3 million based on the 2017 payment of $9.76 per tray.

The orchards will be operated under a joint venture called Matai Pacific Iwi Collective, and the groups say there's potential to expand production and generate new jobs.

"This is an industry we know well, and we have a proven track record of success," Te Arawa Group Holdings chair Andrew West said in a statement. "Together we can build a bright future for our people by delivering jobs and economic growth through the booming global demand for New Zealand kiwifruit."

Bayleys Real Estate marketed the orchards in an international tender, seeking to take advantage of soaring kiwifruit prices that had seen sales of land producing SunGold G3 varieties going for between $900,000 and $1 million per hectare, and green kiwifruit orchards able to be converted to gold selling at $450,000-to-$500,000 per hectare. At an equal split on those prices, the vendors were seeking a sale price of between $66 million and $74 million, not including 102 hectares of grazing land, two residential buildings, plus the option to buy $5.2 million of Zespri shares.

Te Arawa Group Holdings manages the commercial assets for 11 Te Arawa iwi and hapū, representing 21,000 beneficiaries, while Rotoma No 1 was set up in 1908 to administer 6,637 hectares on the shore of Lake Rotoma, with a register of more than 1,800 people. Ngāti Awa Group Holdings manages the assets for 22 hapū representing 20,000 people.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports