Municipal Endowment Fund (MEF)

The MEF is an investment fund intended to provide an enduring return to the citizens of Hamilton. As such, the MEF is our tool for investing in commercial property, including land for future developments, property development, joint ventures and equity partnership. Through these investments, the MEF generates income that is used to benefit Hamiltonians by increasing value through development of Council-owned property and reinvesting proceeds back to grow the MEF. It’s important to note that the income is separate from Council’s core activities, is not funded by or impacts rates and is not used to fund our Long-Term Plan.


The MEF portfolio is currently valued at approximately $59 million, including six properties which make up close to 44% of this value. In 2021, the MEF was reactivated and became managed through Council’s Economic Development Committee.

 

MEF’s seven objectives

  1. Maximise the returns on Municipal Endowment Fund investment through property rental income and capital appreciation.
  2. Maintain the real value of Municipal Endowment Fund investment and distribute maximum returns to Council or as otherwise determined by Council from time to time (according to the guidelines).
  3. Manage properties professionally and ethically to ensure compliance with legal requirements.
  4. Manage Municipal Endowment Fund investment cautiously to minimise property and portfolio risk exposures.
  5. Have an investment plan for new acquisitions that provides clear guidance regarding types of properties, their location and approved activities of tenants.
  6. Operate solid control practices to prevent unauthorised transactions.
  7. Provide timely, accurate and understandable information to Council about financial and other matters relating to Municipal Endowment Fund investment.

Click here to read the Municipal Endowment Fund Investment Policy.

 

Frequently asked questions

Does the MEF give out grants?

No. The MEF is not a source of grant funding for local projects. The Council’s Long-Term Plan is the primary tool for these opportunities.

What are the criteria for investment?

  • A project must be viable from a commercial perspective and must have a business case to support it.
  • The whole project must return a profit in return for the funds invested but at the same time deliver according to Council’s values and expectations; make a measurable difference.
  • The Council Investment and Liability Management Policy is to be adhered to.
  • The Sale and Disposal of Council Land Policy 2019 is to be complied with.
  • Non-financial benefits of investments must be considered in the light of making Hamilton a better place. Aspirational city projects and advancing city plans inspires consequential desirable developments by others.
  • The potential to provide future value growth.
  • Portfolio balance between property sectors.

Get in touch to find out more about the MEF

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Last updated 3 October 2024