Business North October 2021

38 | REGIONAL DEVELOPMENT Kawerau: Putauaki Trust Putauaki - custodians of the land from page 36 In 2019/20 the trust got Provincial Growth funding for the development of roads and infrastructure for an Industrial Park. CALL US TODAY 0800 118 111 engineering@agfirst.co.nz agfirstengineering.co.nz SPECIALISTS IN DESIGN/SUPPLY/BUILD WATER & EFFLUENT Proud to be Putauaki Trust’s preferred supplier of effluent monitoring solutions BayVets Clinic Phone: 07 304 9184 40 Bridge Street, Edgecumbe. Proud to be associated with Putauaki Trust Proud to assist Putauaki Trust with commercial property advice to help our region’s growth. www.sharptudhope.co.nz “Ten years ago the Trust had an asset base be- tween $5 million and $10 million,” says John. “Today we have an asset base of around $60 million, all based around this 1200 hectares.” Assets include a 500-hectare plantation for- estry block, of which 400 hectares is subject to a forestry right and 100 hectares is the Trust’s own trees which were harvested 2015/16 and replanted with 50% radiata pine and 50% native species.” In 2000 the Trust executed a 42-year Deed of Lease with Fletcher Forest who established a log yard and rail siding. And there was a Deed of Grant over 21 acres for a private roadway connecting the Mills to the Tarawera Forests. Both agreements created valuable royalty for the Trust and of course the share- holders. In 2003 a geothermal project royalty agree- ment was executed with Mighty River Power, now Mercury Energy, providing royalties on an annual basis. “Mercury Energy has a number of geother- mal wells on our land, which connects to the Kawerau Geothermal Power Station. That provides good passive income and from that we’ve been able to extend our asset base with the purchase of a couple of dairy farms and Kiwifruit orchards outside of the Trusts block of land.” In 1886 the land was covered in hot ash from the Mount Tarawera eruption, leaving the land marginal with a pumice type soil. But in 2015 the Trust came across a water bore that provides irrigation for 140 hectares of a 300-hectare dairy conversion. “That was key for growth for the Trust. Without the water we would not have been to page 40 able to do the dairy conversion. That farm is really thriving now. We have kept the cow to land ratio to a minimum, only milking 720 cows but pumping out close to 300,000kgMS each year.” The next phase of the Trust’s evolution was the development of the Putauaki Trust Industrial Park. Johns says it was through the good will and vision of the Trust’s Board in 2010 that they saw the opportunity to work along side the Kawerau and Whakatane Councils to rezone part of the Trust’s land industrial, to meet a shortage in the Eastern Bay. In 2013 a structure plan was established and approval went through various author- ities including the Environmental Court and approximately 115 hectares of the Trust’s land is now zoned industrial. “In 2019/20 we got Provincial Growth funding enabling us to develop the roading and infrastructure for an Industrial Park on our land. The development is now largely complete apart from a bit of fine-tuning and that land is now available to long-term tenants with businesses with long-term sustainable operations.” There are currently eight large lots availa- ble, but there is a plan for a further 20 smaller lots once an additional internal roadway is built. “We’re looking for businesses that have low environmental impact and who look after their workers, which aligns with the Trust’s values of looking after the people and envi- ronment. “Ten years ago the Trust had an asset base between $5 and $10 million. Today we have an asset base of around $60 million, all based around this 1200 hectares.”