The Whakatāne District Council has agreed to develop an investment framework to safeguard and grow the $52 million of harbour-related assets it holds on the community’s behalf.
The Council owns 131 properties, which were vested by the former Whakatāne Harbour Board when it ceased operations in 1976. Much of that portfolio is made up of property within the Whakatāne CBD, which the Council leases to building owners. Currently, the Harbour Fund holds properties worth an estimated $35.1 million, and has cash reserves of $17.2 million. Cash reserves are invested, with the interest income generated returned to the fund.
The first and second phases are expected to be completed by early-2019 and the investment structure phase will be completed in conjunction with the Council’s 2019/20 Annual Plan, allowing an opportunity for community input into the process.
“The Council has a responsibility to ensure that Harbour fund assets are securely invested for the benefit of future generations,” he says. “That means maintaining the capital value of assets, minimising risk and ensuring that income streams are realised. The development and implementation of an investment strategy will help us to achieve that.”