Investment portfolio for CCTO endorsed by Council

Published: 29 August 2024

Napier City Council today endorsed in principle the investment portfolio of its forthcoming Council Controlled Trading Organisation (CCTO) and approved the name Ahuriri Investments Management Limited (AIM) as the CCTO’s official name. Council also approved a maximum of five directors to be appointed, made up of three independent directors and two elected members.

The CCTO was approved to be established after community consultation earlier this year as part of the development of Council’s Three-Year Plan. Council’s objective in setting up the CCTO is to create an inter-generational investment portfolio that will benefit current and future generations of Napier residents. It will be 100% owned by ratepayers.

Napier Mayor Kirsten Wise says today’s decisions give the community further clarity on the nature of the investments to be managed on behalf of the city.

“We have approved these assets in principle only. This will allow staff to carry out due diligence on each asset. In the meantime, it allows our community to understand the scope of what the CCTO will likely manage,” says Mayor Wise.

The endorsed investment classes to be potentially included in the CCTO’s investment portfolio are Parklands property development, selected surplus property, the leasehold land portfolio, NCC’s shareholding in Hawke’s Bay Airport and managed funds.

The CCTO will be accountable to the community and to Council on its investment portfolio’s performance through a statement of expectation approved by Council. This is expected to be ready for Council’s adoption by the end of this year.

“Our intention all along with this CCTO is to protect the value of our investments, which belong to all Napier ratepayers. In practice this means there would be full public consultation should Council want to use the base capital of any strategic assets in the CCTO for a specific purpose,” says Mayor Wise.

The CCTO will be governed by a blend of commercial and council-affiliated directors. This will ensure the perspectives and expertise of independent commercial directors and councillors will be represented.

It is anticipated that the legal establishment of Ahuriri Investments Management Limited will take place in the final quarter of 2024/25.

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