He arotake i ngā toenga whenua o PKW - Corpus whenua rent review

The latest rent review for the Parininihi ki Waitōtara (PKW) corpus whenua began in mid-August with the first property inspections completed by the valuers.

The review covers the entire corpus whenua portfolio of 20,000 hectares. It is intended to recognise any growth in value that has occurred over the previous seven years.

It is a significant piece of mahi, says Richard Buttimore, Te Rau Whakahono Pito / General Manager Property, with the corpus whenua portfolio currently realising $9 million each year for the Incorporation.

The rent review process is governed by the Māori Reserved Land Amendment Act 1997, which changed the frequency of reviews from every 21 years to every seven years, as well as giving Māori land owners the first right to buy any leasehold titles coming on to the open market. The vast majority of rents under the current review will come into force on 1 January, 2024.

The lengthy process involves visits to every property, and Richard expects all inspections to be completed by September 2023, before the presentation of a draft report.

The rent assessment is based on the value of the land in its original state in 1892 when settlement reserves were set aside for the return of land confiscated from Taranaki Māori. Making such assessments on the original value and any subsequent growth is a complex and sometimes contested issue.

Third parties hold the lease on more than 270 parcels of land, and so negotiation with them is necessary to achieve a fair rent.

The majority of these third parties are members of the West Coast Settlement Reserves Lessee Association, and Richard says a collegial approach with the lessees helps smooth the process, with both parties appointing a valuer to make the inspections.

“The reality is that we are in a partnership with the lessees – we have a commercial relationship with them – and so the collegial approach is key in working out any issues and overcoming them.”

Past reviews have seen Ranald Gordon act as valuer for the Incorporation. Now that Ranald has retired, PKW has appointed two external valuers to represent its interests.

“We went through a robust process to find our valuers. They both have had a lot of experience in this kind of work, having acted for other Māori incorporations and entities in Wakatū, Te Tai o Poutini, Tairāwhiti and te puku o te ika,” says Richard.

The valuation process looks at the current market value of a property (both the leasehold title and the underlying Māori freehold title) and then deducts any improvements on the whenua (dwellings, cowsheds, fences) and then any improvements to the whenua (clearing, drainage, contouring) to establish the value of the unimproved, underlying whenua on which the rent is based.

“The collegial approach does not guarantee the parties will agree on a fair annual rent, but it will identify the areas where we cannot agree and allow us an avenue to attempt to resolve these constructively.”

In the event a rental figure cannot be agreed upon, the matter would go to third-party arbitration by an independent body.