Trust Tairāwhiti likely to put some of sale money to cyclone recovery work

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Money from the $260m sale of the region’s lines network could be used to aid the region’s cyclone recovery efforts, Trust Tairāwhiti says.

The Overseas Investment Office (OIO) approved the sale of Eastland Network in March.

Funds were split between Eastland Group and Trust Tairāwhiti, with the trust receiving $80m, made up of a return of $30m of capital notes and a special distribution of $50m.

Trust Tairāwhiti chief operating officer shared services and community Kim Allan said that money had been invested in short-term deposits to ensure “immediate returns, liquidity and a diverse investment portfolio”.

“Together with trustees, we’re reviewing our five-year strategic plan as well as our investment strategy to achieve a sustainable balance of what is available to invest in our communities now and to preserve for the long-term. One of the core purposes in our Trust Deed is capital preservation, so future beneficiaries continue to benefit from the trust fund.

“Throughout our engagement prior to the network sale, trustees were clear on their intent to provide more for beneficiaries through investment in community facilities, regional projects and economic development.

“Engagement is ongoing with regional stakeholders about their priorities for Tairāwhiti and how trust funds could be best used to support the rohe, particularly in the recovery from Cyclone Gabrielle.”

■ The OIO recently published further details of the sale on its website, revealing that Eastland Network, now First Light Network, was bought by international-owned First Sunrise Bidco Limited.

“The applicant is a company incorporated in New Zealand for the purposes of this investment,” the OIO decision stated.

“It is ultimately owned by First Sentier Funds which is managed by First Sentier Investors, a global fund manager which invests in economic infrastructure assets such as waste management, energy, water and chemical storage facilities as well as transport and telecommunication networks in OECD countries.”

First Sentier is ultimately owned by Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank.

“LINZ granted consent as it considered the applicants have met the investor test and non-residential use criterion.

“The Minister of Finance has decided that the investment is not contrary to New Zealand’s national interest,” the OIO decision concluded.