Status: FOR IMMEDIATE RELEASE
Date: 26 June 2018
Subject: Ngāti Awa Partner with Te Arawa Group and Rotoma No.1 to Acquire 100 ha of Kiwifruit
Ngāti Awa Group Holdings, Te Arawa Group Holdings and Rotoma No 1 Incorporation today announced they have successfully acquired the Matai Pacific group of kiwifruit orchards, comprising of almost 100 canopy hectares.
The three orchards – Te Matai Orchard; Pacific Gold Orchard and Coachman Orchard – are located in Te Puke.
The orchards will now be operated by a new Māori-owned joint-venture called Matai Pacific Iwi Collective. These orchards have been owned by overseas interests for the past 17 years.
Ngāti Awa Group Holdings Chair Paul Quinn says Matai Pacific fitted NAGHL’s target profile for investment. “It is a mature business, with strong cash-flows, a good management team and able to operate independently without too much effort. The kiwifruit sector has good forecast growth potential, while these orchards contain further development opportunities that we may wish to realise in the future.”
“The orchards will contribute solidly to Ngāti Awa’a financial sustainability, enabling us to better support hapū aspirations.”
There are no plans to make any immediate changes to the three separate orchards. However medium term prospects for the orchards include further conversion of green to gold, expansion of the canopy coverage area, and development of new varieties for export markets.
Expanding our production will create opportunities for long-term job growth for our people. Furthermore the scale of the orchards gives the Collective more flexibility for year round employment, rather than short term seasonal pickers.
“Like our two partners, we see this as an intergenerational investment. The decisions we make now are for future generations. This has the potential to create a legacy” said Dr Joe
Mason, Chair, Te Rūnanga o Ngāti Awa. “Alongside our partners we will be a major player in
the Kiwifruit industry.”
The co-investment with Te Arawa Group and Rotoma leverages the different strengths of the three iwi. Te Arawa Group Holdings already has nearly ten years’ experience in the kiwifruit industry, while Rotoma have been seeking investments with good income distribution potential. Ngāti Awa have provided capital, investment and financial analysis, and will be actively involved in the ongoing operations of the business.
The properties currently grow green (Hayward) and gold (G3) varieties in roughly equal percentages. When mature, the three blocks are expected to produce up to 1.3 million trays. Ngāti Awa Group Holdings has taken an equal third share of the business and will appoint one of the three Shareholder Directors to the Board, who will be joined by up to two Independent Directors.
The sale process was a competitive tender undertaken by Bayleys. The conditions of the tender require the sale price to remain confidential.
For more information, please contact:
Ngāti Awa Group Holdings