Rangatira Annual Report 2025 - Flipbook - Page 12
Rangatira Investments
Key activity during the year:
• NZ Pastures completed the sale of six forestry
blocks that totalled 2,000 hectares, still subject to
OIO approval. Purchase of a further 3,000 hectares
of land for planting in the FY2025 winter season.
• Acquired additional units in Eastern Rise
and Aurora kiwifruit partnerships.
• Negotiated the sale of Auckland Packaging
Company, which was completed in June 25.
• BeGroup invested into the Whitby Lake
Retirement Village; we contributed $10m
towards this purchase.
• Appointed three new leaders to portfolio
businesses:
– Fiordland Lobster – Jason Judkins, CEO
– Rainbows End – Susan Mundie, CEO
– Boucott Hospital – Graham Dyer, CEO
Direct investments
Rainbow’s End
The market environment has been challenging with
guest numbers and in park spending impacted by the
economic downturn, tightened domestic spending
and high inflationary environment.
We saw visitor numbers decline by 9% from last year
but managed to increase the earnings from the park
with improved cost management.
We are looking forward to the new Pirate Ship ride
being available in October this year and we expect
this to attract more return visitors through the 25/26
summer.
Susan Mundie as the new CEO has managed well
since taking over the role in late 2024, having
strengthened the management team and brought
additional cost management disciplines
to operations.
As the domestic economy improves and the
transport links between Tauranga, Hamilton and
Auckland advance it should increase the catchment
area and increase visitor numbers.
12
Polynesian Spa
On the back of a record year in FY24, domestic
volumes contracted in FY25. While international
tourism grew it did not fully replace the lost domestic
volumes. Most of the NZ’s returning international
tourists have been US, UK and Australian visitors who
are not traditional customers of the Spa. Historically,
Asian visitors have made up the majority of the Spa’s
customers and, to date, the important Chinese market
is well short of historical numbers.
Like Rainbow’s End, it remained both profitable and
been a strong cash contributor through dividends.
A competing facility, close to the Spa, opened in FY23
although we believe it has not made a material dent in
customer demand as it has become clear that the two
operations target a different market. Polynesian Spa
has entry prices of $45-60 per person as compared
to an entry point of $100-150 per person at the new
market entrant.
This year we have also undertaken improvements in
the Deluxe Spa area, built two more geothermal bores
and in the winter of 2025, the district council will be
rebuilding the lake wall in front of the Deluxe Spa area.
Through this we expect some disruption, but it will
future proof the Deluxe area for years to come.
Rotorua as a destination point for tourism is improving.
Together the council and local businesses are jointly
investing in marketing campaigns to draw more
domestic and international visitors to the region.
Northland Waste
This has been a new investment for us this year, with
us taking a 25% stake in April 2024. Performance since
investment has been strong, with actual results ahead
of budget and base case at the time of investment,
leading to an increase in our holding value of the
investment.
As we have learnt more about the business and the
people behind it, we have become more positive
about its fit in our portfolio, the culture match between
our organisations and the prospects ahead for the
shareholders and staff.
This year the business has started the transition of
some of its Auckland Council contracts to a rate funded
model and was successful in renewing a long-term
contract with the Far North District Council for their
domestic collection. The business also won a new
collections contract in Nelson and have continued to
grow market share in the Lower North Island region.
