| Decision number | 200620037 |
|---|---|
| Application number | 200610119 |
| Date | 7 September 2006 |
| Offeror/applicant | SMLK Limited |
| Ultimate applicant beneficial ownership | 50 percent - Switzerland, Krattiger (Lukas) 50 percent - Switzerland, Marcionelli-Bucher (Sylvia) |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 100 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | DSM Land Limited of New Zealand |
| Business activities | Forestry |
| Details of land involved | Details of Land Involved 51.5239 hectares of freehold situated at Waitawhiti Road, Tiraumea, Wairarapa being part CT WN40B/605 (Wellington Registry). |
| Regions involved | Wairarapa |
| Total consideration | $339,584 |
| Consent sought | To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale | 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. The Applicant proposes to acquire a forestry block growing pinus radiata which is part of a larger forestry block comprising 1,226 hectares being subdivided by the vendor. The land was planted in pinus radiata in 2005. The vendor will continue to manage the block under a management agreement and the Applicant will provide capital to fund the on-going development of the forestry block. In essence the proposal is a joint venture between the Applicant (who is providing capital for development purposes) and the vendor which is a New Zealand company (which has been engaged by the Applicant to provide the expertise necessary to manage the operation). To date 518 hectares have been planted and this proposed sale will provide capital to the vendor to further develop the forest on the remaining land. The proposal is likely to result in the following benefits:
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| Contact | Stuart Weir Kemps Lawyers PO Box 62-566 AUCKLAND |