Applicant
ARE Holdings Ltd and the trustees of the 2017 Clinton Family Trust
Case number(s)
201710070
Decision date
Type
Decision

Decision

 

Consent Granted
Section 12(a) Overseas Investment Act 2005

Decision Maker

Overseas Investment Office

Decision Date

24 May 2018

Investment

An overseas investment in sensitive land, being the Applicant's acquisition of:

  • freehold interest in 494.0569 hectares of land at Glenross Station - Hokoroa Road, Tolaga, Gisborne; and
  • a freehold interest in 296.1334 hectares of land at Cariboo Station - Whangara Road, Tolaga Bay, Gisborne; and

An overseas investment in securities in the Applicant after it has acquired an interest in sensitive land.

Consideration

$2,913,000

Applicant

ARE Holdings Ltd and the trustees of the 2017 Clinton Family Trust
Helen Margaret Clinton, Canada (50.0%)
Russell John Clinton, Canada (50.0%)

Vendor

Russell John Clinton & Helen Margaret Clinton
Canada (100%)

Background

Russell Clinton and Helen Clinton originally converted the land to forestry.  To enable estate and succession planning, Russell Clinton and Helen Clinton structured ARE Holdings Ltd to hold interests in the Glenross Station and Cariboo Station.  The trustee’s of the 2017 Clinton Family Trust intend to convey ownership and control interests in ARE Holdings Ltd for future generations of the Clinton Family.

In proportion to this Investment, we consider the following benefits are likely to occur:

  • Creating a set-back area around the existing 9 hectares of protected indigenous vegetation located on Glenross Station and establishing possum, goat control, and wilding removal programmes;
  • Developing a new wetland and small indigenous forest on Cariboo Station;
  • Establishing an amount of new full-time equivalent positions for the new possum and goat control initiatives and for the planting of Manuka and native trees, weed releasing, and ongoing maintenance for the new ecological area.

The relevant overseas person (collectively) has previously invested in New Zealand, in converting the land to forestry, which has resulted in benefits to New Zealand, including investing several million in developing the forestry stations, increasing domestic processing of pruned logs and an associated increase in export receipts, new jobs, and carbon sequestration in support of a significant Government policy.

More information

Catherine Reid
Barrister
catherine@catherinereid.co.nz