|Date||12 September 2005|
|Offeror/applicant||Otago Land Company|
|Ultimate applicant beneficial ownership||56.89 percent - United States of America, GMO Forestry Fund 7 International LP|
26.18 percent - United States of America, GMO Forestry Fund 7-B LP
16.93 percent - United States of America, GMO Forestry Fund 7-A LP
|Beneficial overseas ownership|
|- Asset current||0 percent|
|- Asset proposed||100 percent|
|- Share current||N/A|
|- Share proposed||N/A|
|Offeree(s)/seller(s)||Ngai Tahu Forest Estates Limited of New Zealand|
|Details of land involved||22,415.79 hectares of freehold situated at Otago Coast Forest and Berwick Forest, Otago being CTs 195169, 195170, 195171, 195168, 195164, 195165, 195166, 195138, 195139, 195149, 195150, 195147, 195140, 195141, 195142, 195143, 195146, 203348, 203349, 203350, 203351, 203352, 220126, 253707, 253708, 253709, 244201, 244202, 250502, 250503, 250204, 250506, 250507, 250508, 250510, 250511, 250512, 250513, 250515 and 250516 Otago Registry), subject to long term registered Forestry Rights pursuant to the Forestry Rights Registration Act 1983 in favour of Wenita Forestry Limited.|
|Consent Sought - 1995 Regs|
The application has been approved as it met the criteria.
The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.
The Applicant is an investment fund established and managed by Renewable Resources LLC for investment in timberlands outside of the United States of America. Renewable Resources LLC manages international forest investments including approximately 27,000 hectares in New Zealand comprising Crown forestry licences, forestry rights, leasehold and freehold land.
The Applicant proposes to acquire the freehold interest of the subject land. The trees on the land are owned by Wenita Forestry Limited (Wenita) and the rights secured by registered Forestry Rights. The Applicant’s parent, Fund 7 Foreign, LLC is a 38 percent shareholder of Wenita. The proposal is likely to result in further stability with the land underlying the forestry rights being owned by one of Wenita's shareholders. From Wenita's perspective having the Applicant as the landowner will give it added security to invest in silviculture, infrastructure, and replanting.
The proposal is likely to result in the following benefits:
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