Section 12(a) Overseas Investment Act 2005
|Decision Date||23 September 2016|
An overseas investment in sensitive land, being the Applicant's acquisition of:
|Applicant||Wairarapa Estate Limited|
Southland Estate Limited
The Trust Company (Australia) Limited as trustee for the New Forests Australia New Zealand Forest Operating Fund 2 (100%) which is wholly owned by certain overseas investment Funds. The New Forests Australia New Zealand Forest Operating Fund 2 is managed by New Forests Asset Management Pty Limited
|Vendor||Forestlands N.Z Limited and 18 other associated companies|
Kearns Family Trust, New Zealand (100.0%)
The Applicants are owned by overseas institutional investors via an investment fund known as New Forests Australia New Zealand Forest Fund 2 which is managed by New Forests Asset Management Pty Limited (New Forests).
New Forests has a mandate to invest in New Zealand and Australian forest assets. Since entering the New Zealand market in 2014, it has made various beneficial investments in New Zealand’s forest industry, including investments in downstream sawmilling infrastructure.
New Forests currently has significant committed funds available to continue its investment programme and is in the process of finalising the uptake of a new fund to undertake investment from the beginning of 2017.
New Forests considers Australia and New Zealand are two of the world’s most stable economies and the forestry industry is over 100 years old in each country with well-established productivity, operating history, and infrastructure. New Forests therefore sees New Zealand as an attractive investment destination to provide exposure to the rapidly growing Asian markets as well as the Australian domestic softwood lumber market which has a supply deficit.
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
Overseas Investment Regulations 2005
|More information||Alan Paterson|
PO Box 8