|Date||28 September 2005|
|Offeror/applicant||New Zealand Sustainable Investments Fund 1|
|Ultimate applicant beneficial ownership||James Fielding Funds Management Limited as trustee for the New Zealand Sustainable Investments Fund 1 of Australia|
|Beneficial overseas ownership|
|- Asset current||60.56 percent|
|- Asset proposed||100 percent|
|- Share current||N/A|
|- Share proposed||N/A|
|Offeree(s)/seller(s)||Evergreen Forests Limited|
39.44 percent - New Zealand, New Zealand Public
36.34 percent - United States of America, OPERS International Fund 1, LP
8.19 percent - Denmark, Danske Civil OG Akademiingenicerers Pensionkasse
8.19 percent - Denmark, Laerernes Pension Forsikringsaktieselskab (Teacher's Pension and Life Insurance Company Limited)
7.84 percent - United States of America, Arnold & S Bleichroeder, Inc.
|Details of land involved|
25,612.4185 hectares of freehold comprising:
|Regions involved||Bay of Plenty/Coromandel|
|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 (JFFML) is the funds management division of the Mirvac Group and is wholly owned by Mirvac Limited. Mirvac Group is listed as a stapled security with Mirvac Property Trust on the Australian Stock Exchange. The Applicant proposes to acquire 12 forests from Evergreen Forests Limited (Evergreen) and Rawanui Farm Limited as trustee for the New Zealand Sustainable Investments Fund 1 which comprises Australian unit holders. The forests comprise 25,612.4185 hectares of freehold land and 11,477.9 hectares of forestry rights.
JFFML is pursuing a strategy of seeking superior investment returns from both timber related activities and through the development and implementation of environmental services. JFFML is implementing this policy by investing and managing sustainable forests. The acquisition of the subject forests will provide JFFML with the ability to harvest and replant the forests over a period of time.
In February 2004 JFFML established an unlisted environmentally sustainable infrastructure fund, the Australian Sustainable Investment Fund (ASIF) to acquire land holdings and interests in land with forestry and/or forestry based rental income streams. The principle strategy of ASIF is to enhance these forestry income streams by implementing sustainable value adding from activities such as carbon credit sales, renewable energy incomes (eg wind farm rentals and biomass sales), agistment income from livestock grazing and biodiversity salinity credits.
JFFML is intending to continue negotiations that have already commenced between Evergreen and Mighty River Power in relation to a wind farm installation on the Rototuna Forest (situated in Northland). In addition JFFML is also considering the viability of a wind farm operation in the Waiau Forest and West Ho Forest (situated in the Gisborne District), and installing biomass energy facilities at the same locations as the wind farms. JFFML will be entering into negotiations with major energy sector companies in the last quarter of 2005. The biomass energy facilities utilise the non-commercial thinning waste and by-products from forestry operations.
The proposal is likely to result in the following benefits:
the creation of new employment opportunities; and
increased efficiencies and productivity resulting from additional investment in silviculture and improved forestry returns through the determination of optimal harvesting points.
|Contact||Alan Paterson/Edward Dunphy|
P O Box 8