Regional Development Minister Shane Jones announced the reappointment of John Rae as Chair of Crown Regional Holdings Limited (CRHL) for another three years. The move aims to maintain stability in managing the Crown's regional investment holdings.
CRHL serves as a Schedule 4A asset-holding company under the Public Finance Act 1989. Shareholding Ministers are the Minister of Finance and the Minister for Economic and Regional Development.
"John Rae's reappointment recognises the depth of experience and governance capability he brings to the Crown's regional investment portfolio." — Regional Development Minister Shane Jones
Portfolio Reaches $1.085 Billion
As at 30 June 2025, the CRHL portfolio included investments from eight regional funds across 13 regions and 19 sectors. It comprised 201 active contracts worth $1,085 million, broken down as $822 million in loans, $140 million in equity, and $123 million in capital assets.
According to the CRHL Annual Report 2025, the portfolio grew from $1,015 million across 200 projects the previous year.
- Loans: $822 million
- Equity: $140 million
- Capital assets: $123 million
Top regions by contracted funding included Bay of Plenty at $359 million, Hawke's Bay at $163 million, Northland at $140 million, and Tairāwhiti at $123 million.
Official Performance Claims
The CRHL Annual Report 2025 states the portfolio met or nearly met all performance targets. Independent modelling linked $2.35 billion in deployed capital to $4.09 billion in extra spending, $1.75 billion in additional GDP, and 17,268 jobs.
The report notes the portfolio is maturing, with more assets delivered, contracts drawn down, and nine loans fully repaid. Red-rated projects made up just over 7 per cent of the portfolio.
"Mr Rae's continued leadership will provide stability and ensure the board remains well-placed to support the Government's regional development objectives." — Regional Development Minister Shane Jones
Media Scrutiny on Credit Quality
NZ Herald reporting in February 2026 highlighted a surge in impairment write-offs. It flagged more than half of a $433 million loan portfolio as at risk of default.
BusinessDesk coverage noted a rise in red-flagged investments, attributing it to tougher economic conditions. These reports contrast with the official 7 per cent figure.
Fiscal Implications for Taxpayers
The $1.085 billion scale represents a material Crown exposure concentrated in loans and equity. Rising impairments could require additional provisioning, affecting OBEGAL and departmental baselines.
CRHL holds legacy Provincial Growth Fund investments alongside newer programmes such as the Regional Infrastructure Fund. Day-to-day management rests with Kānoa within MBIE.
Ongoing risks around credit quality in regional development lending raise questions about value for taxpayers. Maturing loans may generate returns, but higher-risk profiles compared to private alternatives persist.
