The perceived ‘status discount’ applying to valuation of Maori freehold land justified Mare Kupa’s request that part of his rural subdivision be re-classified as general land; widening the pool of potential buyers, enabling sales to potentially recover at least $700,000 reducing farm debt and avoiding a potential forced sale.
The Maori Land Court was told Mr Kupa faced pressing financial need to raise cash, clearing debt over his farm, inland from Hastings.
In 2021, the court approved subdivision of eight residential sections, carved off from his farm on land held in customary Maori ownership.
It required these sections remain Maori freehold land.
Four years later, Mr Kupa was back before the Maori Land Court.
There had been some interest, but no firm offers to buy. Buyer feedback was that there was no interest in purchasing residential land designated as Maori freehold land.
Banks would not lend. Taking security over Maori freehold land leaves lenders with a limited pool of prospective purchasers on any forced sale; sales are limited to blood relatives of current owners.
This restriction is designed to prevent further losses of land held in Maori customary ownership.
Judge Stone approved Mr Kupa’s Te Ture Whenua Maori Act application to change status of half the eight residential sections to that of general land; increasing the sections’ value and widening the pool of potential buyers.
Primary reason is to enable reduction of farm debt, Judge Stone said.
This is one-off, Judge Stone warned. The court is not likely to entertain any further status changes for Mr Kupa’s Maori freehold sections for debt repayment, he said.
Terms of the court order did not impose any condition that sale proceeds in fact be used to pay down farm debt.
re application by Kupa jnr – Maori Land Court (20.03.26)
26.110