Mr Nock said FNHL welcomed the ministry's move to establish new offices in Kaitaia, and in so doing upgrade the town's stock of commercial property.
"There were no existing commercial properties on offer that met the ministry's requirements, and which were earthquake code compliant and secure from flooding," he said.
"By providing the ministry with a suitable building, and its staff with a workplace that is fit and safe to work in, we are enabling it to maintain a central presence in Kaitaia while also generating a return for all ratepayers.
"Part of our role is to provide and maintain infrastructure that works for our district's economy by making the Far North a great place to live and work. This investment in Kaitaia's commercial building stock helps to deliver that."
FNHL is responsible for managing and operating the commercial activities of the Far North District Council, including Port Opua, the Bay of Islands marina, Kaitāia and Bay of Islands airports, the Paihia Maritime Buildings and Paihia wharf, Williams Road Car Park (Paihia) and the Kaitaia Education Campus.
Since 2005 all of its trading surplus has been distributed to the council or reinvested in property and infrastructure within the district.
The council estimates that without this financial contribution general rates would have been approximately four per cent higher every year.