DecisionConsent Granted
Section 12(a) Overseas Investment Act 2005
Decision date1 July 2010
Investment

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

  • a freehold interest in 408.2773 hectares of land at 1079 SH2, Wairoa known as Te Kohi Station; and
  • a freehold interest in 275.4295 hectares of land at 1079 SH2, Wairoa known as Ikanui.
Consideration$3,093,750
ApplicantGrandy Lake Forest (NZ) Limited
Eberhard Gemmingen, Germany (33.34%)
Wolf-Eckart Gemmingen, Germany (33.33%)
Albrecht Gemmingen, Germany (33.33%)
VendorsRobert David Pryde and Vanessa Gwenneth Pryde
New Zealand (100%)
Te Kohi Wairoa Limited
Robert David Pryde, New Zealand (50.0%)
Vanessa Gwenneth Pryde, New Zealand (50.0%)
Background

The Applicant is an experienced forestry investor operating in Germany, North America and New Zealand. The proposed transaction is a continuation of the Applicant's previous investments in New Zealand’s forestry sector.

The land is currently operated as a sheep and cattle farm but is unprofitable. The Applicant will establish a pinus radiata forest on the land. There will also be smaller areas of redwood and eucalyptus.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(v) – Additional investment for development purposes
17(2)(d) – Historic Heritage

Overseas Investment Regulations 2005
28(e) – Previous investments

More informationStephen Greer
Sainsbury Logan & Williams
PO Box 41
Napier 4140