Frequently Asked Questions
Q1: What is Auckland Regional Holdings?
A: Auckland Regional Holdings is a statutory council-controlled organisation, engaged in investment management activities, established by the Local Government (Auckland) Amendment Act 2004 (LGAAA04) to act in the long-term interests and for the benefit of the Auckland region.
Q2: What makes up ARH's investment portfolio?
A: ARH's investment portfolio has four macro classes which jointly contribute towards ARH's $1 billion investment portfolio.
Ports of Auckland Limited - NZ Equity Non-listed
Ports of Auckland Limited is 100% owned by Auckland Regional Holdings.
- NZ Property
Auckland Regional Holdings is the landowner of 18 hectares of waterfront land, wharf and waterspace property holdings (Wynyard Precinct).
- Diversified Financial Assets (DFA)
Our DFA porfolio consist of 50% global equities, 40% global bonds, and 10% NZ cash.
- NZ Short-term Cash
Our short-term cash are bank deposits and registered certificates of deposit (RCD).
Q3: What are ARH's objectives?
A: Auckland Regional Holdings (ARH) is a unique statutory organisation with a dual and challenging role. We are intergenerational investment managers with a brief to invest prudently and to provide funds to the Auckland Regional Council (our sole beneficiary) for essential regional transport and stormwater programmes. We also have an obligation to act in the long-term interests for the benefit of the Auckland region.
Q4: What does ARH do?
A: ARH provides long-term sustainable funding for regional transport and stormwater programmes from its investment portfolio, and manages its assets prudently in the long-term interests of the Auckland Region.
Q5: Is there any other entity like Auckland Regional Holdings in New Zealand?
A: There aren't any other entities in New Zealand with ARH's unique statute and status. We consider our peers to be other statutory intergenerational investment organisations such as New Zealand Superannuation Fund, Government Superannuation Fund Authority, and the investment activities of Accident Compensation Corporation and Earthquake Commission.
Q6: Why is ARH different?
A: ARH has broader objectives and responsibilities than a purely commercially-driven corporate entity. It was established by statute to undertake commercial activities and to assist the ARC to achieve its objectives through the provision of funding under ARH's Long-Term Funding Plan (LTFP). It must operate in a sustainable, financially-responsible manner, in the long-term interests of the Auckland region.
Q7: Who is Auckland Regional Holdings accountable to?
A: Auckland Regional Holdings is a unique statutory entity created by the Local Government (Auckland) Amendment Act 2004 (LGAAA04) as a body corporate with perpetual succession. It is not a local authority, company, trust or crown entity. It is also described by the LGAAA04 as a council-controlled organisation (CCO) and is accountable to the Auckland Regional Council.
Q8: Who governs Auckland Regional Holdings?
A: All decisions relating to the operation of Auckland Regional Holdings are made by or under the authority of the Board of ARH.
Q9: Who appoints the ARH Board?
A: The Auckland Regional Council appoints the ARH Board.
Q10: When was ARH established?
A: Auckland Regional Holdings was established on 1 July 2004, as a successor to Infrastructure Auckland (IA).
Q11: What's the difference between ARH and its predecessor, Infrastructure Auckland?
A: ARH's predecessor Infrastructure Auckland made grants for individual transport or stormwater projects and had a limited short-term investment mandate. ARH provides long-term sustainable funding for transport and stormwater programmes. Similar to a pension fund, ARH does not specify how the ARC (as financial beneficiary) uses the funds. The LGAAA04 does specify that ARC must use 85% of ARH distributions for stormwater and transport programmes.
Q12: What is Auckland Regional Holdings' relationship with the Auckland Regional Council?
A: As a council-controlled organisation, Auckland Regional Holdings is accountable to the Auckland Regional Council (ARC). In 2008, ARH funding to the ARC was equivalent to 70% of ARC's annual rate revenue.
Q13: How much money does it distribute to the Auckland Regional Council?
A: In the five and a half years since inception (1 July 2004) Auckland Regional Holdings has distributed $570.7million to the ARC.
Q14: How can it be sure it can deliver the distributions to the ARC?
A: ARH has long-term time horizons, high transparency, clear objectives and a well-defined investment strategy. This approach is embedded in key documents such as ARH's Long-Term Funding Plan and Statement of Investment Policies, Standards and Procedures. ARH deploys best-practice standards for risk monitoring and subsequent management and mitigation. These encompass financial parameters as well as considering a range of non-financial constraints. This is essential to meet the challenge of ARH's dual role which is to ensure certainty to the region of financial outcomes and funding flows as well as non-financial outcomes.
Q15: Does any other organisation or council get money from Auckland Regional Holdings?
A: No.
Q16: Who owns Ports of Auckland Limited?
A: Auckland Regional Holdings in the 100 per cent shareholder of Ports of Auckland.
80% of these shares were vested in Auckland Regional Holdings by Parliament in 2004. The remaining 20% was purchased by Auckland Regional Holdings in 2005.
Q17: What is Auckland Regional Holdings' direct land ownership on the waterfront?
A: Auckland Regional Holdings own 16.4 hectares of land and waterspace within Wynyard Quarter on Auckland's waterfront (Tank Farm).
Q18: Who is paying for the Wynyard waterfront renewal project?
A: Auckland Regional Holdings and the Auckland City Council have jointly committed $210 million to develop the public infrastructure on the sites. This will ultimately be funded by development contributions and ground lease payments from private developers. Between 2010-2020, Auckland Regional Holdings will be investing up to $200 million in public and private works.
Q19: How is the public money being invested?
A: The public works within Wynyard precinct include wharf edges, promenades, roads, underground services, and approximately six hectares of public areas comprising parks and plazas and landscaping. The redevelopment will provide the essential foundation needed to build momentum to attract and secure private investment and demonstrate the public sector's commitment to this long-term project.
Q20: What or who is Sea+City Projects Limited?
A: Sea+City Projects Limited (established and owned by Auckland Regional Holdings) provides property management services and project management / redevelopment services in respect of the Wynyard Precinct on Auckland's waterfront, in accordance with the agreements between the Company and its clients.
The scope of activities carried out by the Company includes:
- acting as ARH's agent in respect of ARH's investment property in the Wynyard Precinct, and day-to-day property management of existing tenancies and leases for existing tenants
- acting as ARH's agent for the redevelopment of ARH's investment property in the Wynyard Precinct
- acting as project manager to ARH and Auckland City Council for the management and implementation of the Public Amenity and Infrastructure Works within the Wynyard Precinct
- acting as project director to Auckland City Council for the design and construction of Te Wero Bridge
