Grant's Kōrero: Continuing to Build on Our Strategy
With our Annual Plan and 5-Year Plan now approved by the Whai Rawa and Trust Boards, it's a good time to share an update on where we're heading and why.
Our commercial strategy remains anchored in key pillars:
- increasing revenue from our investments
- recycling capital
- diversifying our portfolio
- enhancing Te Tōangaroa
These pillars guide every part of our approach.
At the heart of our strategy is increasing revenue. We’re doing this through agreements like the one with NZDF to build 51 rental homes on the North Shore, and with Generus Living Group, who will take over operations at the Eastcliffe village. Another example is the proposed long-term lease of 246 Ōrākei Road, where the iwi will retain ownership of the whenua while unlocking income from it.
Another core focus is recycling capital. This means leasing or selling lower-yielding assets and reinvesting the proceeds into higher-performing opportunities. That’s why we sold development land on the North Shore to Summerset earlier this year.
We’re also making progress on diversifying our investments. Our target is to have 10 percent of our portfolio outside of property, and to broaden the remaining 90 percent across a wider mix of property types. That means going beyond just ground leases, office buildings, and residential developments, and considering areas like industrial property.
To support this shift, we will acquire shares and financial assets, guided by Amova Asset Management, our newly appointed investment consultant. Amova have also taken on our whanaunga and inaugural Taku Taunga scholar, Angel Butler, as an intern. This is a great example of how our strategy can create meaningful development opportunities for our people.
Enhancing Te Tōangaroa remains a central kaupapa. We’re increasing activation and investing in the built environment to attract quality tenants over the long term, even as current market momentum remains slow. We’re also continuing to promote Te Tōangaroa as a tangata whenua-led urban precinct, something we’re incredibly proud of.
This year also marks a new cycle of ground lease rent reviews at Te Tōangaroa. These occur every seven years and often attract media interest. Our position is clear: we are upholding the terms of our lease arrangements, as any commercial landlord would. The process is transparent, and we will follow it, engaging openly and fairly with our lessees.
Looking ahead, our goals for the next five years include increased net profit before tax, stable and growing investments, and for distributions to be paid from surplus cash generated by our assets.
Of course, we’re not ignoring the challenges in the market. The commercial property sector, particularly office space, remains tough, with high vacancy rates. But there are positive signs. We recently secured NZ Customs as a tenant at AECOM House, along with WOTSO (a flexible co-working space provider). We’ve also signed up Blackwoods and a rental car operator on The Strand.
Land valuations remain uncertain. We’re currently preparing our 2025 financial statements and, similar to last year, expect to report a valuation-driven loss. These are non-cash, accounting adjustments reflecting current conditions. Our long-term view remains unchanged. We’re building strong foundations now to deliver sustainable returns over time.
We’re confident in our strategy. We’ve got great assets in high-quality locations, a clear plan, a capable team, and strong support from both the Whai Rawa and Trust Boards. Our job now is to continue delivering methodically and consistently so we’re in the best possible position to support our whānau today and for generations to come.
