Overseas investment decision for case 200810021 - Craigpine Timber Limited

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.

Background to the Investment:
The Applicant intends to purchase the land and forestry assets known as the Pinnacle Pine Forest. The Applicant has already commenced work on the harvesting of an initial 35.5 hectares under an agreement to purchase the forest crop.

The Applicant will acquire the subject land to secure long-term future timber supplies for the Applicant's sawmill located in Winton. Craigpine will purchase increments of Pinnacle Pine Forest over an eight year period from the time of consent, then maintain, harvest, mill and replant the forestry resource contained in the purchased increments.

Rationale for the Investment:
The Applicant intends to purchase further forestry assets as opportunities arise to add to the forestry estate it has established in the Winton area. The acquisition of the land will enable the Applicant to replant the trees as they are harvested, thereby adding to a forest estate which will support the sawmill operations in the future.

The proposed overseas investment is or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits: