DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision Date29 June 2017
Investment

An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 800.4695 hectares of land, being:

  • approximately 612.9475 hectares of land at 1470 Masterton Castlepoint Road, Tauweru, Wairarapa; and
  • approximately 187.5220 hectares of land at 645 Blairlogie-Langdale Road, Blairlogie, Wairarapa.
Consideration$16,390,000
ApplicantZE Forest Limited
Liechtenstein (100%)
Vendor

Kahumingi Forestry Partnership Custodial Company Limited
New Zealand (100%)

Flatspur Forestry Partnership Custodial Company Limited
New Zealand (100%)

Background

The Applicant has interests in forestry in Finland, Uruguay and New Zealand.

The land is two small forestry blocks in the Wairarapa region. The Applicant intends to harvest the forests and replant them following harvest. The overseas investment is likely to lead to enhanced walking access and environmental protection measures on the land, including legal protection. The Applicant’s intended ecological programme is also likely to generate a number of job opportunities of limited duration.

The Applicant’s majority beneficial interest in the Oban Forest, which adjoins one of the forestry blocks, is also likely to lead to some efficiency in harvesting that forest in conjunction with Oban Forest. The Applicant’s previous investments which have been or are of benefit to New Zealand include a New Zealand subsidiary of Ivoclar Vivident, which employs over 50 full-time staff.

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)(iv) –Greater efficiency or productivity
17(2)(b) – Indigenous vegetation/fauna
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(e) – Previous investments

More informationSally Sisson
Forest Management (NZ) Limited
PO Box 14
Waverley 4544