Our monthly newsletter endeavours to give you insights in to changes and trends we are seeing in the market or industry.
Newsletter - June 2025
This month’s update refers to several opinion pieces and reports, one by Sam Stubbs in the Sunday Star Times recently. Despite the global uncertainty and travails around tariffs and global conflicts, the article has a largely “glass half full” slant to it for the New Zealand economy. Key points made are:
1. House prices are stabilising and “…..by being boring, the housing market will encourage money into the more productive economy…..”. Tabak note that this is reinforced by our recent experiences with the business banks, being more receptive to business lending than perhaps 6-12 months ago.
2. The growth of KiwiSaver and its investment in the real economy with “…..KiwiSaver is already $120 billion big and starting to have powerful long-term effects.”
3. KiwiSaver funds are also seen as a natural partner for infrastructure investment and “….are natural owners of the things we all use – power, water, roads and hospitals.” The article notes that currently up to 30% of all KiwiSaver’s $120 billion of investments are in NZ, and if this ratio remains unchanged, by 2050 this $120b could reach $900b – including $250b for investment within NZ.
4. Increasing numbers of deals being done with iwi and overseas players, including Brookfield and Tainui for a large-scale logistics hub; and more recently in the South Island the investment by Lineage, a Nasdaq-listed company, committing to building a 38,000 sqm cold storage facility in iZone, Rolleston – providing up to 70 new jobs.
5. Summarising, the article concludes “So the good news is we are starting to get the boring stuff right – better regulation, a more rational property market, saving and investing in our future. None of these things creates an immediate sense of well-being, but it’s the economic equivalent of eating vegetables – we won’t regret it.”
More recently PwC’s latest update for the quarter ended March found M&A activity increased by 38% on the prior comparable period, and golden visa applications are on the rise. Most are in the $5 million minimum investment growth category, and 20 are in the higher $10m balanced category.
The report concludes “Overall, though, we are very optimistic and confident that the tailwinds are starting to turn from headwinds and we’re getting more confidence going back into the market for activity”.
This confidence is mirrored within Tabak where we are getting low on quality listings, as buyers are moving quickly to secure good opportunities. For example, in the South Island we have had four businesses move into due diligence within the space of two weeks or so, as buyers make the decision that now is a good time to invest in a quality business.
Click the link below to read the article in full
https://www.thepost.co.nz/busi...
Damien Fahey; Partner
Tabak Business Sales, Christchurch