2024 will be at tricky year to navigate

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Let’s hope that this year does not mirror the tumultuous start of 2023, marked by cyclones and market uncertainty as market conditions have a direct bearing on the property’s market value. Economic predictions and their outcomes, and impacts, specifically on the property market, remain an exercise in crystal ball gazing.

However, Williams’ Harvey accumulates a library of research from numerous commentaries and views of economic/research analysts to corral the trends and build a ‘big picture’ oversight and it seems timely at the beginning of the year to have a look at the local Hawke’s Bay picture.

There is consistent evidence to suggest the local property market (like much of New Zealand) is in transition as the volume of residential property sales has decreased, house value increases have shown a deceleration, the median days to sell have increased and levels of inventory have increased. The February 2024 REINZ report for Hawke’s Bay shows the January 2024 figures show that the MSP for Hawke’s Bay increased by 3% to $677,000 compared to January 2023, but back slightly to the December 2023 MSP. For New Zealand (excluding Auckland) the MSP has dropped marginally year on year (-0.7%) to $760,000 month-on-month compared to the same time in 2023.

There are some predominant factors contributing to the current environment. Firstly, the cost of living has irrefutably increased with rising inflation. Secondly, the aggressive measures taken by RBNZ to curb this inflation with the steep OCR hikes which increase mortgage security lending interest rates.

Thirdly, a lack of access to finance due to the amendments to the Credit Contracts and Consumer Finance Act (CCCFA) which came into effect in December 2021. These amendments have seen lenders apply draconian assessment parameters to buyers applying for mortgage security funding. The total number of properties sold across New Zealand in January 2024 increased 4.9% year-on-year to 2,995 and decreased 44.1% month-on-month from 5,357.

The current median Days to Sell of 45 days is more than the 10-year average for January which is 42 days. There were 16 weeks of inventory in January 2024 which is 8 weeks less than the same time last year. The pressure for value growth continued through to 2021, levelling out in 2022 and reducing in 2023. The Hawkes Bay volume of sales recorded for 2022 was the lowest annual volume Hawkes Bay has recorded in over 30 years. This low volume of sales continued for 2023 which recorded a slight increase in the volume with 2,029 sales, however, is well back on the higher volumes recorded 2015 to 2021 where volumes of sales ranged between 2,517 and 3,110 per annum.

However, to put it into perspective there has still been significant value growth in a relatively short time frame. Analysis of the last five years of activity shows that the MSP table (the median of the monthly MSP recorded by REINZ) shows an increase of 38.16% on pre-pandemic values.

Annual medians (as expressed in the table) can be misleading, therefore, we have also analysed the REINZ statistics into Quarterly blocks and compared to the MSP of each previous quarter. The heat of the market peaked in Q4 2021, however, each successive quarter in 2022 produced a negative result with a declining MSP which continued into Q1 of 2023, after which the market stabilised and firmed in Q4 2023.

The quarterly volume of sales increased each quarter from Q1 2023 at 401 sales through to Q4 2023 at 574 sales. This indicates market conditions became more positive as the year progressed. New Zealand is now well the other side of the pandemic.

Inflation at home and overseas is still the predominant economic nemesis. Some pundits predict the tide may finally be turning, albeit slowly, whilst others forecast more hikes due to strong employment data. So, there is still some way to go before the ‘war on inflation’ is won as this is still well outside the RBNZ’s target band. There are a couple of new variables that look set to play a key role in dominating the economic outlook for 2024, being the impacts of migration, and fiscal policy. Once again 2024 is shaping up to be another tricky year to negotiate.

Unison invites community contributions to mark centenary

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Unison is proud to celebrate 100 years of powering Hawke’s Bay on 19 June 2024 and is inviting contributions from the community to collectively tell the story of Unison’s journey in the region.

From its establishment as the Hawke’s Bay Electric Power Board on 19 June 1924, Unison has been an integral part of the local economy and Hawke’s Bay. The centenary offers a unique opportunity for reflection, celebration, and anticipation of what the future holds.

A focal point of the centennial celebration is the collection and display of stories that detail Unison’s journey over the last 100 years. Unison is inviting current and former staff, and all those who have been a part of its journey to share stories, photos and items that can be showcased as part of an interactive exhibition at the Faraday Museum in Napier from June through August. Evolving from a small local lines company to a group of specialist electricity companies located all over the world, Unison continues to innovate and grow all whilst powering its regions of Hawke’s Bay, Taupō and Rotorua.

Unison has powered countless homes, supported the development of business and economic growth, and backed the wellbeing of its communities through its wide range of sponsorships. Unison Group Chief Executive, Jaun Park shares his enthusiasm for the centenary, underlining the vital role of community participation in enriching the celebration.

“We’re proud of our history and the role we’ve played in the community for the past 100 years. As we mark a century of service, it is essential to honour and acknowledge the people who have been a part of our journey. This milestone not only allows us to reflect on our past achievements but also serves as an inspiration for future innovations. “We want to hear from everyone connected to Unison’s story, past and present. This is not just Unison’s history, this is the shared history of our region.

Celebrate with us, share your memories, your photographs, and your stories for everyone in the community to enjoy,” said Mr Park. Unison has set up a special Facebook group named “Celebrating 100 Years of Unison(Hawke’s Bay Electric Power Board)” where everyone can share their memories, or you can make contact via email or post.

For more details visit www.unison.co.nz/100-years

 

What the ‘everything rally’ did to markets in 2023

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The investment market in 2023 was strong – unlike the year prior – largely thanks to an impactful December quarter. It’s a great example of the need for patience and a reminder of the importance of a long-term view when investing.

The positive returns were driven by what we’re calling the “everything rally” – a perfect storm of equities rallying and debt securities (bonds) more than reversing the losses recorded in the previous quarter.

The rally began in November when inflation fell faster than expected and spurred hopes of central banks cutting interest rates in most major economies. This saw recession fears replaced with growing confidence that central banks will achieve their inflation targets without tipping economies into recession.

In December, that confidence was boosted by the US Federal Reserve changing its outlook to include three forecast interest rate cuts in 2024. This fanned investors’ expectations of deeper and faster cuts, which led to higher equity prices.

Equities responded strongly to the news

Equity markets finished the year on a high note, with global equities producing a quarterly gain of +5.4% in New Zealand dollar terms, driven largely by the US equity market finishing just shy of an all-time high. While the “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) produced most of the US equity market gains in 2023, the rally broadened to the rest of the market in the December quarter. You can see this when you look at the tech-dominated NASDAQ Index – up +14.3% and the broader S&P 500 Index’s gain of +11.2% – both in the December quarter.

Elsewhere, equity market returns were more modest at around +2 to +6% returns over the quarter. And closer to home, the Australian equity market produced a strong +8.9% gain in New Zealand dollars, while the New Zealand equity market was more subdued at +2.7%.

Debt securities join the rally.

Before the December quarter, it looked like 2023 would be another ho hum year for investors in New Zealand bonds. But the December quarter delivered strong returns.

Better New Zealand bond returns were attributed to growing optimism that inflation was cooling, and interest rates would soon be lowered. As a result, there was increased demand for bonds, which drove prices up and saw interest rates fall. As a result of the 5.0% quarterly gain, NZ bonds avoided a third straight year of losses, producing a +7.5% annual return.

This in many ways restored value in bonds that was challenged in 2022.

Looking forward in 2024

Globally, economic activity is likely to slow but we see recession being avoided in 2024. While key economic uncertainties remain, severe economic outcomes look less likely than in 2023. After a year to forget in 2022, last year was a lot better for New Zealand bond returns.

We expect New Zealand’s longer-term interest rates to decline, echoing our expectations of global rates. This increases the attractiveness of New Zealand bonds as falling interest rates increase their capital value. On balance, the evidence suggests relatively balanced risks around global equities, which supports a neutral exposure to this asset class.

Investment implications

The 11th-hour rally of the markets to the end of 2023 will have restored the faith of many investors in the markets. That said, for 2024 investors should continue with a disciplined approach to diversified asset allocation in quality assets to ensure they make the most out of having a balanced portfolio.

Note: This article was written on 15 Jan 2024.

Tobias Taylor is Director, Wealth Management Adviser at Jarden. This research has been prepared by Jarden Securities Limited (Jarden) which holds a licence issued by the Financial Markets Authority to provide a financial advice service. The information in this research solely relates to the companies and investment opportunities specified within. The nature and scope of any financial advice included within that research are limited to generic and non-personalised commentary about that investment only, such as the performance and the investment outlook of the company concerned. Any such commentary does
not take into account any individual’s particular financial situation, objectives, goals or appetite for risk. We recommend that you seek financial advice that is specific to your personal circumstances before making any investment decision or taking any action. No fees, expenses, or other amounts will be payable for the provision of any financial advice in this research report. However, if you act on any information or advice contained in this research report, a brokerage fee (and other fees such as an administration and custody fee) may be payable to Jarden. For fees payable for brokerage and other services provided by Jarden, information on our complaints and dispute resolution process, and the duties applicable to us for providing financial advice, please see our publicly available disclosure statement at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement

More funding needed for road to recovery in Hawke’s Bay

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Hawke’s Bay leaders are calling for more government funding to rebuild the region’s extensively damaged roads and bridges.

As the powerhouse of its local economy, the region’s primary sector and associated supporting services rely heavily on a reliable and resilient roading network.

Whilst Councils are grateful for the Government support received to date and as a result have made good progress repairing damage over the past twelve months, there is still so much work to do. The reality is, however, this comes with a price tag far too high for ratepayers to bear and without additional funding support, much of this critical repair work won’t be finished in a timely manner and some is unlikely to be completed at all.

Across Central Hawke’s Bay, Hastings and Wairoa around $1.1 billion worth of damage to local roads was caused by Cyclone Gabrielle, approximately $700 million of which is currently still unfunded.

These were the overarching messages in a meeting held today in Wellington between Prime Minister, Christopher Luxon, local mayors, Chair of Hawke’s Bay Regional Council, the Regional Recovery Agency and mana whenua representatives.

Hastings Mayor, Sandra Hazlehurst says roading infrastructure repair and access remains a core priority for much of the region.

“In the Hastings District, damage to our roads and bridges as a result of the cyclone totals $800m which is a huge investment and one we simply can’t afford on our own.

“We had a really constructive conversation with Prime Minister Luxon about the need for further government support over an extended period of time. This is vital for ensuring as a region, we have confidence in our ability to restore a roading network our communities and our economy can rely on.”

She says Cyclone Gabrielle has highlighted the need for central Government to review its overall approach to roading recovery funding to enable local economies to get back up and running faster after significant emergency events, which are undoubtedly becoming more frequent in nature.

“Specifically, we are asking for a combination of enhanced funding rates and bespoke additional funding assistance that would see central Government cover the cost of the majority of the remaining roading repairs, with the balance to be funded through council rates.”

Mayor of Central Hawke’s Bay and Co-Chair of the Matariki Governance Group, Alex Walker says in Central Hawke’s Bay alone, without this additional support they are staring down the barrel of decades worth of work at the current government funding rate or, alternatively, rate rises that would cripple the community for years to come.

“If we can get the funding assistance we need however, we can complete the work in five to six years, get our primary sector and overall economy back on its feet sooner and position Hawke’s Bay as key player in helping this government with its goal of doubling the value of exports in the next ten years.”

She says restoring a strong gate to market connection as quickly as possible is vital to achieving this, so farmers and growers can efficiently bring in the raw materials they need and then send out finished product, for processing and delivery to overseas markets.

“With various roads and bridges still out of action, lengthy detours are resulting in additional costs falling on our already hard-hit primary sector businesses.

“We understand the impact also extends beyond the economy and for some in our communities, extended travel times are taking a toll financially and mentally.”

Co-Chair of the Hawke’s Bay Matariki Governance Group and Chair of Tātau Tātau o te Wairoa Trust, Leon Symessays whilst as a region there is a shared commitment to restoring a roading network that can support a thriving economy for Hawke’s Bay, there is no question further support from Government is critical to delivering this.

“Councils have been working together with the Regional Recovery Agency to develop a phased and sequenced programme of work that captures the full picture of roading repairs required across the region, inclusive of the funding assistance required to deliver this.”

He says the region’s leaders recognise the need to balance both the fiscal constraints of central Government as well as their own resourcing constraints in regard to carrying out such a large programme of work.

Mayor Walker says Councils are open to how and over what period of time additional support is allocated, which aligns with a commitment made to building and maintaining a long-term credible partnership by only asking for what the region can actually deliver in any given time period.

“With a firm commitment to material levels of support over the next several years we can ultimately plan for a better future for the region, and we will continue working with central Government to achieve this.”

Speeding up both the Government-led Kaupapa Māori pathway for Category 3 land and programmes to address the regions severe housing shortages were also discussed in today’s meeting.

The Parkerian Hexad: Elevating Information Security Beyond the CIA Triad

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While you may or may not be aware of the CIA Triad, it is a well-known set of fundamental principles of information security – Confidentiality, Integrity, and Availability. It clearly defines the relationship between information and security.

Confidentiality: Often considered the most fundamental principle of the CIA Triad, this involves protecting information from unauthorised access. It ensures that sensitive data is only accessible to those with the proper permissions. Integrity: Also part of the CIA Triad, integrity ensures that data remains accurate and unaltered. It involves protecting information from unauthorised modification or tampering, ensuring that it retains its original state and reliability.

Availability: Another core principle of the CIA Triad is that availability ensures that information and resources are accessible and usable when needed. It involves safeguarding against disruptions or outages that could impact the availability of critical systems and data. The Parkerian Hexad is a security framework that extends and complements the Triad, to include three additional elements:

Possession, Authenticity, and Utility. It points to the potential vulnerabilities between the CIA attributes. “These attributes of information are atomic in that they are not broken down into further constituents; they are non-overlapping in that they refer to unique aspects of information. Any information security breach can be described as affecting one or more of these fundamental attributes of information.”

Possession: Possession emphasises the control and ownership of information. Possession ensures that authorised entities have the rightful ownership and control over the data or resources, preventing unauthorised entities from claiming possession. Information can be confidential and have integrity, but in the hands of the wrong person, it can threaten both attributes. “Suppose a thief were to steal a sealed envelope containing a bank debit card and its personal identification number. Even if the thief did not open that envelope, it’s reasonable for the victim to be concerned that the thief could do so at any time.”

Authenticity: This principle addresses the trustworthiness of information and the assurance that it is genuine and not falsified. Authenticity ensures that users can rely on the accuracy and origin of the information. “For example, one method for verifying the authorship of a handwritten document is to compare the handwriting characteristics of the document to a sampling of others that have already been verified. For electronic information, a digital signature could be used to verify the authorship of a digital document using public-key cryptography (could also be used to verify the integrity of the document).”

Utility: This is another extension introduced by the Parkerian Hexad, emphasising the usefulness of information. Utility involves ensuring that information serves its intended purpose and provides value to authorised users while also preventing misuse. “For example, suppose someone encrypted data on disk to prevent unauthorized access or undetected modifications–and then lost the decryption key: that would be a breach of utility. The data would be confidential, controlled, integral, authentic, and available–they just wouldn’t be useful in that form.” As we go into the new year, the Parkerian Hexad builds upon the CIA Triad by incorporating Possession, Authenticity,
and Utility, providing a clearer understanding of how to address various aspects of information security, ownership, trustworthiness, and usability. All quotes sourced from (https://en.wikipedia.org/wiki/Parkerian_Hexad)

Tom is the owner of Govern Cybersecurity.
He has over 18 years in the cybersecurity and IT industry at management level, and for the past 6 years has been a lecturer in cybersecurity at the Eastern Institute of Technology. He has earned certifications in ISO 27001 Lead Auditing, Lead Implementation, SOC2, and Ethical Hacking. These certifications are considered the international gold standard for business security.

12 months on from Gabrielle – the impact on claims and insurance premiums

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It is hard to believe that a year has already passed since Cyclone Gabrielle devastated our region. What has happened a year on regarding insurance claims, and how will it affect your premiums moving forward? As at 13 December 2023, insurers had settled 99,798 of 115,353 claims (about 87%) from the Cyclone Gabrielle and Auckland Anniversary events, according to the latest Insurance Council of New Zealand report.

75% of business claims have been paid at a cost of $814,857,610.  This was said to be tracking as expected with business interruption claims being spread over time. The total amount to be paid out is expected to be $1.4 billion. All of these claims account for about 75% of the total value of damage, which is estimated to be $3.6b. This total however does not include the uninsured losses to the economy.

Impact on insurance premiums

It is no surprise with the cost of these payments that it will have a massive impact on insurance premiums, not just for Hawke’s Bay but for the entire country. Reinsurance premiums, paid by our local insurers to protect themselves from catastrophic events, have been increasing for several years. The cost of reinsurance, to cover catastrophic events, is one of the largest expenses for an insurance company. More unpredictable weather events mean a rise in reinsurance costs, which then of course get passed on by insurers to the consumer. Premiums for most policy types are therefore expected to increase over the next year.

In addition to reinsurance costs, another reason for the premium increases is the inflationary environment. This is caused by the increasing cost of materials to repair or replace property and cars. Legal fees and settlements paid for liability claims and any other fees that need to be paid to assess an insurance claim are also increasing.

Availability of insurance

It is not just the cost of premiums that will be a challenge for many this year. It is also around the availability or capacity of the insurance available. Insurers may reduce the amount of cover they are willing to provide in certain areas due to the increased risk. As insurers update flood models with the change in weather patterns for example, we are already starting to see them decline cover in some areas.

 

Brokers shown to have greater insurance outcomes

A recent survey by Vero showed that clients who used an insurance broker were more likely to have improved outcomes along with having greater confidence in their level of cover. Rising premiums and reduced insurance capacity are not new to any seasoned insurance broker, so if you haven’t engaged a broker to manage your personal or business insurances perhaps now is the time to think about it. A good broker will focus on positive alternatives and potential solutions to address the challenges the current market is providing, including how we can further mitigate any of your current risks. Our team is also of course willing to talk to anyone who is not happy with the outcomes provided by their current broker and to help ensure that you feel secure in your risk and insurance programme.

You can do this Hawke’s Bay

We have come a long way in the last 12 months to recover and rebuild. Whilst there is still much to do, we have come through a large array of natural disasters before over the last 150 years. The people of our region are resilient, and we will bloom back into full life again in time.

We can do this! icib.co.nz

Acquisition of Bostock Brothers Limited in New Zealand

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Inghams Group Limited (ASX: ING) (Inghams, Company) today announces its intention to acquire 100% of the Bostock Brothers organic chicken business in New Zealand for NZ$35.3 million (approximately A$33.0 million).

Key points

  • Acquisition of New Zealand’s only organic poultry producer with premium market position is strongly aligned with Inghams strategy
  • Acquiring 100% of the shares in Bostock Brothers Limited (BBL), including the brand with respect to poultry products, three freehold farming properties and the primary processing plant
  • Completion expected by end September 2024

Inghams CEO and Managing Director, Andrew Reeves, said: “With the strong recovery in operational and financial performance of our New Zealand business, this acquisition represents a unique opportunity to further enhance our capabilities, extend our range and advance our plans for the business.”

Commenting on the acquisition, Inghams Chief Executive, New Zealand, Edward Alexander, said: “The addition of the highly regarded premium Bostock brand and team strongly aligns with our objective to establish Inghams as the leading premium operator in the market.”

BBL overview

Established in 2014, BBL is the only certified organic producer of poultry in New Zealand. BBL’s operations are located in Hastings, on the central east coast of the North Island, approximately four hours from Inghams Waitoa operations.

BBL is expected to deliver FY24 EBITDA of between NZ$3.5 – 4.0 million1.

The acquisition is forecast to be immediately EPS accretive to FY25 earnings and, including identified synergies, is expected to generate a Return on Invested Capital meaningfully in excess of Inghams hurdle rate.

Strong alignment with strategy

The acquisition strongly aligns with Inghams strategy to establish the Company as the leading premium operator in the New Zealand market in the following ways:

  • Exclusive Market Positioning and Brand Equity: BBL is uniquely positioned in the New Zealand poultry sector, boasting strong brand recognition and a premium product range.
  • Vertically Integrated Supply Chain with Capacity for Future Growth: BBL’s vertically integrated supply chain enhances our operational resilience, provides contingency, and additional capacity to support future growth initiatives.
  • Access to new markets: Opportunity to leverage established high-value export channels to expand Inghams reach into new geographic markets and customer segments.

Funding & completion The acquisition will be fully funded from existing debt facilities, and is contingent upon the satisfaction of conditions, including with respect to the Commerce Commission and Overseas Investment Office. Completion is expected by end September 2024.

Flood protection work in Hawke’s Bay a step closer

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Cabinet has agreed to engage on a proposal for a temporary change to legislation under the Severe Weather Emergency Recovery Legislation Act 2023 (SWERLA), which would speed up the delivery of flood protection work across Hawke’s Bay.

On the back of Cyclone Gabrielle, Hawke’s Bay Regional Council has earmarked seven areas where new flood infrastructure would see category 2A and 2C properties reclassified to Category 1 and one area where new flood infrastructure would protect an industrial area as well as Napier’s wastewater treatment plant. These areas are Wairoa, Whirinaki, Waiohiki, Ohiti Road/Omāhu, Pākōwhai, Havelock North, Pōrangahau and Awatoto.

Since the cyclone and other severe weather events in early 2023, laws have been changed on a range of issues to help recovery efforts across affected regions. The mechanism being used to do this, which is what is being proposed in this instance, is a piece of secondary legislation called an Order in Council (OiC).

Hawke’s Bay Regional Council Chair, Hinewai Ormsby welcomed the decision by cabinet, saying the order would provide a streamlined process for the multiple resource consent applications that would inevitably be required before construction of any planned flood infrastructure could begin.

“This will play an important role in enabling work to start sooner and progress to be kept on track, whilst ensuring the usual protective measures of cultural and environmental impact assessments will not be compromised.

“Ultimately we want to be able to provide certainty for our Category 2 property owners that they have a pathway to Category 1 and this is reliant on consent for new flood infrastructure works in these areas.”

She said whilst Council acknowledges each Category 2 community is at a different stage in the process, the reality is that regardless of the preferred solution there will be resource consents required to undertake the work.

“In Wairoa and Pōrangahau, we are still working through options with those communities at this point, but it is reassuring to know when we get to the consent stage we will be able to move through this process efficiently.”

The Ministry for the Environment (MfE), on behalf of central Government, is running a public engagement on the proposal which finishes on 18 March. Details of this engagement are available on the Ministry for the Environment website.

Large scale development gets fast track consent approval

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Wairatahi, a large scale residential development in Hastings owned by Heretaunga Tamatea Pou Tahua – the commercial arm of Tamatea Pōkai Whenua, (formerly Heretaunga Tamatea Settlement Trust) – has secured approval to go ahead via the Government’s fast track consent process.

Tamatea Pōkai Whenua (TPW) chair Pōhatu Paku said the Covid-19 Recovery Fast-Track Consent decision was a significant outcome for the Trust; a major boost for the region’s economy and affordable housing supply.

“This is a major milestone for our hapū settlement entity and we are ecstatic that consent has been approved by the government’s fast track process which will create many jobs during construction and increase housing supply by up to 450 warm homes.

“This is one of the largest Māori led residential development on the East Coast and a lot of mahi has been put into the design which will realise the full potential of our whenua,” Mr Paku said.

Heretaunga Tamatea Pou Tahua, the commercial subsidiary of TPW,  chairperson Renata Hakiwai said site works for stage 1 could commence towards the end of this year, following discussions with potential development partners.

Wairatahi, is a 28ha property in Stock Road and will offer a range of housing options, including townhouses, detached dwellings, multi-generational homes, and standalone houses.

Tamatea Pōkai Whenua Chief Executive Dr Darryn Russell explains the community impact the Trust and its commercial arm are advancing for greater Hastings.

“As well as a diverse mix of housing options, we are ultimately creating a new community and extensive planning has gone into how we protect and enhance the environment such as the restoration and protection of the Irongate Stream.

“The development is not just for our members and their whānau but for all people and the fast-track decision is timely based on what our region is facing since the cyclone destroyed many homes across our rohe,” Dr Russell said.

The development is likely to have a small neighbourhood centre, community gardens, playground, and central park connected to open space separating the development from the State Highway and a walkway network, including along the Irongate Stream, will also be provided, enhancing public amenity and connectivity.

Dr Russell said the consent application’s success was due to the strong leadership of the Trust’s commercial arm, and a highly capable project team that had worked tirelessly, along with support from Hastings District Council and Hawke’s Bay Regional Council.

“The Heretaunga Tamatea Pou Tahua Board are driving forward the vision to ensure we are developing sustainable communities and  much needed homes in Heretaunga Hastings.

“Hastings District Council and the regional council have been supportive and we look forward to the next steps of our partnership.”

The development is part of TPW’s investment related to a Treaty of Waitangi settlement.

In 2018, a settlement package worth $105 million was made with Heretaunga Tamatea (which represents 43 hapū and 23 marae around the Hastings and Central Hawke’s Bay area) as part of its Treaty of Waitangi claim.

The announcement comes amid a housing crisis in Hawke’s Bay compounded by Cyclone Gabrielle, which sadly destroyed or damaged many homes in the region.

Tātau Tātau Commercial make significant investment into iconic local landmark

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One of New Zealand’s most iconic beach-side holiday parks will continue to welcome thousands of holiday makers while remaining in local ownership.

Tātau Tātau o Te Wairoa Trust’s commercial entity today announced its purchase of the Mahia Beach Motel & Holiday Park, securing an asset that is pivotal to the Wairoa and Mahia community and local economy. This beautiful piece of land is enjoyed by both national and international holiday-goers.

Tātau Tātau Commercial Limited Partnership Kaihautū (Chief Executive) Aayden Clarke said it was important to acknowledge that the 3ha of residentially-zoned beachfront property will continue to provide affordable accommodation for holidaymakers.

“This is a slice of paradise on the east coast has been incredibly popular for generations of whānau as well as national and international tourists.

He signalled future upgrades to the property, located at 43 Moana Drive which currently is an operating business consisting of a mixture of 24 accommodation units and 150 powered and non-powered camping sites.

“This is a mokopuna investment for us, meaning we have a long term outlook to the Motel & camp ground.

“We are committed to making improvements to the holiday park and adding additional value back to the community through upgrades which will enhance the quality of stay for customers.

“At the same time we see other opportunities that complement the existing use,” Mr Clarke says.

Tātau Tātau Commercial Limited Partnership was established to protect and grow the commercial assets on behalf of its shareholder Tātau Tātau o Te Wairoa Trust and the seven Kāhui (Beneficial entities).

Lewis Ratapu, Chief Executive of Tātau Tātau o Te Wairoa Trust commented, “Tātau Tātau are thrilled to be the new custodians of the iconic property.

“It is very important that our people and all visitors can access affordable holiday accommodation, something that is getting harder to achieve as coastal land increases in popularity.

“We are always looking to support further growth in our wider community and to secure a significant site like this is exciting. This asset benefits all of our seven Kāhui, and obviously is of significant importance to one of those Kāhui, Rongomaiwahine.”

Rongomaiwahine Iwi Trust CEO Terence Maru acknowledges the collaborative mahi that has been done with the Tātau Tātau commercial organisation.

“There is so much potential to partner and deliver outcomes to our people while growing capability within our organisation,” Mr Maru said.

Former owner operator Isobel Creswell says ““whilst it was very difficult to let go of this park, I’m very happy it has gone to good hands. This campground now stays in NZ ownership and continues to be a holiday park for generations of families for years to come”

Isobel has been a key stakeholder of the Mahia community for 3.5 years providing affordable accommodation for all walks of life and attracting tourists to the small East Coast settlement.

Mr Clarke said it was important to highlight that “a key part of our Tiriti settlement is the evolution of Mana Motuhake of our whānau, hapū and Iwi o Te Wairoa, and this acquisition is part of exactly that.”