Decision Summary - Strategic Finance Limited

176,902.2966 hectares of freehold comprising:

1. 15,714.2792 hectares situated in the Bay of Plenty region being Various CTs;
2. 48,743.5297 hectares situated in the Northland region being Various CTs;
3. 20,889.0523 hectares situated in the Nelson region being Various CTs;
4. 534.4533 hectares situated in the Gisborne/Hawkes Bay region being Various CTs; and
5. 91,020.9821 hectares situated in the Waikato region being Various CTs.

63,615.1071 hectares of leasehold comprising:

1. 26,912.7264 hectares situated in the Bay of Plenty region being Various CTs;
2. 12,228.0679 hectares situated in the Northland region being Various CTs;
3. 162.0638 hectares situated in the Nelson region being Various CTs; and
4. 24,312.249 hectares situated in the Waikato region being Various CTs.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Hancock Natural Resource Group Inc (Hancock) is a subsidiary of Manulife Financial Corporation, an insurance and investment company in Canada and the United States of America listed on the New York Stock Exchange. Hancock acts for investor clients to identify and complete commercial forest plantation acquisitions and to manage these plantations following acquisition. Hancock's investors comprise public and corporate pension plans, high net-worth individuals and foundations and endowments.

Hancock is the successful bidder in the sales process being conducted by Carter Holt Harvey Limited (CHH) in respect of the Carter Holt Harvey Forest estate (CHH Forest Estate). Hancock has entered into a Sale and Purchase Agreement with CHH in respect of the acquisition of shares in certain CHH subsidiaries and the acquisition of various forest assets from certain CHH companies. The CHH Forest Estate, located in the Northland, Central North Island and Nelson regions, includes freehold and leasehold interests in sensitive land, Crown Forestry Licences, Forestry Rights and other forestry assets. The CHH Forest Estate has an area of approximately 207,000 hectares comprising mostly radiata pine. The Forest Estate is expected to produce approximately 2.9 million tonnes of wood in 2006 increasing to approximately 5.6 million tonnes in 2019.

The acquisition of the CHH Forest Estate will provide further geographical diversification to Hancock's timberland investment portfolio. Hancock's intended strategy for the CHH Forest Estate is to maintain significant aspects of the basis under which the assets have been operated to date and to support management plans for growth and productivity improvements.

The proposal is likely to result in the following benefits:

1. increased efficiencies to the Forest Estate and added market competition in the New Zealand forest products market;
2. the creation of a public walking track and ancillary facilities which is likely to form part of the proposed Te Araroa (a series of walking tracks linking Cape Reinga to Bluff); and
3. improved public access over the land.