| Decision | Consent declined Section 12(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision maker | The Minister for Land Information and the Associate Minister of Finance |
| Decision date | 4 October 2023 |
| Pathway(s) | Sensitive land – Benefit test |
| Investment | Acquisition of a freehold interest in approximately 500 hectares of land in Hawke's Bay (the Land). |
| Consideration | Withheld under section 9(2)(b)(ii) of the Official Information Act 1982 |
| Applicant | ERI Timber New Zealand S.á.r.l. Germany 100% |
| Vendors | Withheld under section 9(2)(a) of the Official Information Act 1982 New Zealand 100% |
| Background | The Applicant is ultimately owned by a German pension fund which represents employees and firms from the German construction sector. The Applicant is a new investor into New Zealand and has a mandate to invest in New Zealand forestry. The Land is easy rolling country with some flat land. It is operated as a sheep and beef farm with some cropping and with a small area of existing forestry. The Land is a mixture of LUC 6 (approximately 90%) and LUC 3 (approximately 10%). The Applicant intended to convert the Land to production forestry by planting approximately 400 hectares of radiata pine trees. The Applicant claimed that the Investment would benefit New Zealand economically through increased job opportunities and increased revenue off the Land. The Applicant also claimed that the Investment would provide various environmental, public access, and advancement of significant government policy benefits. Consent was declined as Ministers were ultimately not satisfied that the likely benefit was proportionate to the sensitivity of the land and the nature of the overseas investment. |
| More information | Catherine Reid catherine@catherine.reid.co.nz |
See the attached Assessment report linked below, which was published in response to an Official Information Act request: