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Raukawa buy half stake in major farming operation

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Fuseworks Media
Fuseworks Media

South Waikato based Iwi, Raukawa have purchased a 47.5 per cent stake in 2,500ha Ranginui Station.

Ranginui Station is a major farming operation made up of three dairy farms, forestry and dry stock located on Ranginui Rd in the Otorohanga District, around 15kms West of Mangakino.

Raukawa Settlement Trust Chairperson Vanessa Eparaima said the purchase was a major development for Raukawa, further returning the iwi as a significant landowner within its tribal boundaries.

Ms Eparaima said the purchase by Raukawa Iwi Development Limited (RIDL), the commercial company of Raukawa, would see the company partner with Pouakani Trust and Putake Limited a joint venture of Te Tumu Paeroa and Taupo Moana Group.

"Raukawa are grateful to be able to work alongside strong Maori partners who share our commitment to sustainability and best practise."

Ranginui is a well-run farm, producing more than 800,000kg milk solids with good bush, forest and runoff areas and a strong compliance culture instituted during development

"Raukawa is committed to best practice farming compliance and environmental standards and through Raukawa Charitable Trust is a stakeholder in the Waikato Regional Council’s Wai Ora - He Rautaki Whakapaipai/Healthy Rivers - Plan for Change consultations," said Ms Eparaima.

RIDL Chairman John Spencer said the purchase was part of a deliberate strategy by the company to seek a balanced portfolio that generates the necessary cash flow to sustain distributions but also provides for long-term capital growth.

"While there have been some tough times in dairying of late, RIDL believes in the future of sustainable dairying. It makes investments for the long term.

"This is a great opportunity to invest alongside a related trust and develop the investment footprint in the region in a well-run farming operation of scale.."

The joint venture would see the formation of a five-member board made up of two directors appointed by each entity who would appoint an independent chair.

Mr Spencer said RIDL was making excellent progress in its vision to be an outstanding iwi investment company and a respected leader within the Central North Island economy.

Last year Raukawa invested alongside a collective of six central North Island iwi to buy a 2.5 per cent stake in New Zealand's largest forestry business, Kaingaroa Timberlands which is valued at more than $2 billion. The collective - Kakano Investment Limited Partnership - bought the stake from the New Zealand Superannuation Fund.

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