Section 12(a) Overseas Investment Act 2005
|Decision Maker||Overseas Investment Office|
|Decision Date||6 September 2019|
|Pathway(s)||Sensitive land – special forestry test|
|Investment||An overseas investment in sensitive land, being the Applicant's acquisition of forestry rights in up to 3,298.6058 hectares of land known as Esk Forest in Hawkes Bay.|
|Transaction Value||This transaction involves forestry rights, the value of which is not determinable until the harvest of the trees.|
|Applicant||Kaiwaka Joint Venture|
Maungaharuru-Tangitū Trust, New Zealand (50%)
United States Public (37.71%)
United Kingdom Public (4.54%)
Luxembourg Public (3.08%)
Various overseas persons (2.79%)
Germany Public (1.04%)
Switzerland Public (0.84%)
New Zealand (100%)
The Kaiwaka Joint Venture is an unincorporated joint venture between Matariki Forests (an overseas-owned company) and a subsidiary of the Maungaharuru-Tangitū Trust. The Maungaharuru-Tangitū Trust is a post-settlement governance entity and representative body for its Hapū.
The Kaiwaka Joint Venture is seeking consent to acquire forestry rights in land that is part of the Esk Forest in Hawkes Bay. It has applied for consent under the special test relating to forestry activities set out in section 16A(4) of the Act.
The grantor of the forestry rights will be Maungaharuru-Tangitū Trust, which will hold freehold title to Esk Forest pursuant to the Maungaharuru-Tangitū Hapū Claims Settlement Act.
The joint venture arrangement is such that the Hapū will maintain ownership and control over Esk Forest, and Matariki will introduce required capital and expertise to help manage portions of the commercial forest.
Much of Esk Forest is currently subject to Crown Forestry Licence (CFLs) that are held by another forest operator, so the process of the CFLs being ended and the forestry rights being granted to the Applicant over various portions of the Land is anticipated to take place gradually over the next 30+ years as various portions of Esk Forest are harvested by the current CFL holder.
|More information||Michael Pollard|
Private Bag 92518