Grant's Kōrero: Whai Rawa’s 2024 Year in Review
Around this time of the year, we prepare our annual report – a look back on the 2024 financial year (1 July 2023 to 30 June 2024). While it’s a legal requirement, it’s also an opportunity to reflect on the past year and set our sights on what we want to achieve in the future.
As I reflect on the past year, Ngāti Whātua Ōrākei Whai Rawa has made steady strides in driving commercial growth to support the aspirations of the hapū. Despite a challenging economic landscape, we have reached milestones that reinforce our commitment to building a sustainable future and delivering lasting benefits for our whānau.
As of the 30 June 2024, our total asset value stood at $1.48 billion - a slight decrease from the year previous, of $1.50 billion. But it’s important to clarify that this change represents an on-paper valuation adjustment, rather than an actual cash loss. This shift reflects the market value of our assets at a point in time and doesn’t mean we lost $20 million in cash.
Despite this, we can be proud to have achieved key milestones over the year, including the Hawaiki papa kāinga housing development, key partnerships within Te Tōangaroa and securing a tenancy with New Zealand Customs Service.
Whānau Housing
On the papa kāinga, our commitment to whānau housing continues to be a top priority. The near-completion of 24 homes at Hawaiki marks a significant step towards our goal of delivering 100 new homes for whānau. We are particularly proud to have secured financing options through BNZ and Westpac and providing a shared ownership option, making homeownership more accessible and achievable for our whānau.
Te Tōangaroa
It should be no surprise that Te Tōangaroa, our largest commercial asset, stands out in this year’s achievements. A key highlight has been our joint venture with Precinct Properties, one of the country’s leading developers. Through this partnership, we’ve acquired two prominent buildings that will play a vital role in shaping the future of the precinct. We’re also proud to welcome New Zealand Customs Service to our 5-Star Green-rated AECOM House, further elevating Te Tōangaroa as a premier business hub.
Additionally, we secured $30 million from Auckland Council for public space enhancements within Te Tōangaroa over the next six years. This funding will help us transform the area into a vibrant, welcoming space for whānau and the broader community, creating a lasting impact with the support of our partners.
Te Tomokanga ki Tāmaki
A major highlight of the year was the launch of Te Tomokanga ki Tāmaki, a tikanga-driven initiative that allows iwi and Māori organisations to co-invest with us in Te Kahu Tōpuni o Tuperiri. Our first project is set to begin at the Downtown carpark site, a significant step in realising the vision of collaborative investment within our rohe.
Looking ahead
As we head into the next year and beyond, we have refreshed our commercial strategy with a focus on four key areas: increasing investment returns, optimising our assets, diversifying our portfolio, and enhancing Te Tōangaroa. This clear direction positions us to continue supporting the Trust and Whai Māia, ensuring that the gains we make today will benefit generations to come.
The four key pillars of this are:
· To increase the yield off our investment portfolio and sustainably fund distributions to the Trust and Whai Māia from our operating cashflows.
· To achieve this, we plan to recycle capital. This means we will sell, lease or develop low yielding assets such as bare land, and use the proceeds from these transactions to buy higher yielding investments.
· This will see us diversify our investment portfolio. We are targeting 10% of our investments being in financial assets (such as shares), and for our property investments to be across a broader range of sectors (industrial for example). We have formalised a formal Statement of Investment Policies and Objectives (SIPO) around these targets.
· Further developing Te Tōangaroa, including partnering with specialists to fulfil the area’s potential, just as we have with Precinct Properties and utilising the funding from Eke Panuku to uplift the public space experience in Te Tōangaroa.
Supporting Whānau Businesses
We are also committed to fostering whānau businesses through Toi Pakihi. We are weeks away from launching an online directory to promote whānau-owned businesses, opening up new opportunities to collaborate with us and our partners. By supporting entrepreneurship within the hapū, we are helping to build a thriving economy that benefits everyone.
For the coming year, Whai Rawa’s plans continue to move forwards and develop into positive outcomes for the hapū. As we update our strategic direction, we will see more instances of activity in the market. We are sitting strong in the face of economic changes, and I am excited for what lies ahead.
