He rau herenga waka - Māori-led investment vehicle drives collaboration and diversification

Joining with iwi and Māori organisations from Te Ika-a-Maui and Te Tau Ihu in a commercial property investment fund will bring Parininihi ki Waitōtara stable returns from a stronger, more diverse portfolio.

Hāpai Commercial Properties already holds investments from 22 iwi and Māori organisations, owning six properties spread across the length of Aotearoa from Auckland to Dunedin.

Parininihi ki Waitōtara (PKW) will commit five million dollars for a stake in the commercial property fund that has proven resilient through recent challenging times.

Parininihi ki Waitōtara Te Rau Whakahono Pito / General Manager Property Richard Buttimore says Hāpai allows access to a higher property asset class, offering stable returns with lower tenancy risk.

“Hāpai will allow us to partner with iwi and other Māori organisations to invest at scale in a better asset class, while utilising the competitive advantage Hāpai brings with their ability to access off-market opportunities.”

The commercial portfolio of Hāpai currently includes MacLeans College in Auckland, a multi-storey office building in Tauranga, Hawkes Bay District Health Board headquarters in Hastings, the Ziwi petfood factory in Napier, and Farmers Department Store in Dunedin’s main street.

The investment in Hāpai will enable diversification in different types of property, at different locations around the country within different sectors (government, commercial and industrial). This helps to diversify risk and provide stable returns while enabling PKW to forge new relationships with other iwi and Māori organisations.

Richard says PKW looked at other property investment vehicles which could provide stable cashflow. The values and collective approach of Hāpai came to the forefront when this investment opportunity was put through the Te Ara Putanga Framework.

“We’re investing with iwi organisations, with Māori partners, who align with our values and share our goals to invest collaboratively in order to build our net wealth collectively.”

PKW will join four iwi in Taranaki that have already invested in Hāpai as well as whanaunga iwi from Te Tau Ihu and Ngāti Mutunga o Wharekauri.

“Being a Māori collective, a Māori-driven investment vehicle, Hāpai mirrors those collective values we share, providing investment partners with a level of influence that wouldn’t be available within a mainstream property investment vehicle.”

An administration arm of Hāpai deals with the day-to-day running of the properties, including managing tenancies, leaving the investors to focus on the management of the cash returns.

Richard says Hāpai has a vision ‘to put a visual footprint on those properties it owns’ to show pride in their collective Māori ownership.

The investment does not mean PKW is turning its back on the ownership of investment property in Taranaki.

PKW currently owns three commercial buildings in the rohe and is actively looking at opportunities when they arise to diversify and grow the portfolio.

“Our active footprint within Taranaki is still front of mind and our interests in farming remain unchanged. It’s about being able to diversify in a considered and balanced manner,”says Richard.