Decision number200610014
Application number200520147
Date21 February 2006
Offeror/applicantHikurangi Forest Farms Limited
Ultimate applicant beneficial ownership40.4 percent - Malaysia, Malaysian Public
28.57 percent - Malaysia, Samling Strategic Corporation Sdn Bhd
10.23 percent - Malaysia, Strategic Corporation Sdn Bhd
7.54 percent - Japan, Sojitz Corporation
7.07 percent – Malaysia, Tapah Plantation Sdn Bhd
6.19 percent - Malaysia, Perkapalan Damai Timur Sdn Bhd
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Peddle (Joan Irene) and Bull (Brian Henry) as trustees of the Peddle Trust of New Zealand
Business activitiesManufacturing - Wood & Paper Products
Details of land involved35.871 hectares of freehold situated at Dunstan Road, Matawhero, Gisborne being CT GS5B/1089 (Gisborne Registry).
Regions involvedVarious
Total consideration$3,050,000
Consent soughtTo 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 are of good character and are not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

The Applicant Hikurangi Forest Farms Limited (Hikurangi) carries on a forestry business in New Zealand in its own right and through its wholly owned subsidiaries, East Coast Forests Limited and Tasman Forestry (Gisborne) Limited. Hikurangi owns or manages approximately 35,009.8 hectares of forest plantation land in New Zealand which is predominantly planted in radiata pine.

Hikurangi proposes to acquire the subject property to develop a timber processing facility. The subject land is located in close proximity to Hikurangi's forestry plantations and the Gisborne Port. The timber processing facility will process Hikurangi's timber resources for the domestic market and for export to global markets.

The proposal is likely to result in the following benefits:

  1. the creation of new job opportunities in New Zealand;
  2. increased productivity in New Zealand;
  3. the introduction into New Zealand of development capital; and
  4. increased processing in New Zealand of New Zealand's primary products.
ContactGraham Harford
Dawson Harford & Partners
PO Box 106347
AUCKLAND