DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision Date16 May 2017
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a beneficial and freehold interest in approximately 9,454.0191 hectares of land at Wairau Valley, Marlborough.
ConsiderationWithheld under s(9)(2)(b)(ii) of the Official Information Act
ApplicantNelson Forests Limited
United States Public (48.0%)
Various overseas persons (27.0%)
Australian Public (13.0%)
Danish Public (9.0%)
New Zealand Public (3.0%)
VendorNgāti Rārua Settlement Trust
New Zealand (100%)
Background

Nelson Forests Limited currently has the Crown Forestry License over the land.  The Ngāti Rārua Settlement Trust is acquiring the land from the Crown as part of a Treaty of Waitangi settlement and wishes to sell it to fund other significant projects to develop their iwi’s economic and social well being.

Nelson Forests Limited also owns the Kaituna sawmill in Marlborough and around 40% of the mill’s wood supply comes from the land.  Nelson Forests Limited has recently made substantial investments in the mill and this investment will secure supply to ensure the mill’s continued operations.

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) – Jobs
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(b) – Indigenous vegetation/fauna
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(d) – Owner to undertake other significant investment
28(e) – Previous investments
28(g) – Enhance the viability of other investments

More informationRobert Styles
C & F Legal Ltd
PO Box 1049
Nelson 7040