Southland Plantation Forest Company of New Zealand received consent to acquire 420ha in Taringatura, and 474ha in Lillburn Valley Rd, Lillburn, under the special test relating to forestry activities.
The vendor was Japanese company Kodansha Treefarm New Zealand Ltd.
Southland Plantation Forestry Company of New Zealand was a repeat forestry investor and had existing forests based mainly in the South Otago/Southland region.
It intended to continue using the land for production forestry and replant following harvest.
The Overseas Investment (Forestry) Amendment Act 2022 recently came into force, changing the assessment criteria for overseas investments that result in the conversion of farmland to production forestry.
The primary change is that overseas consent applications for farm-to-forestry conversions are now considered under the general benefit to New Zealand test, rather than the more permissive special forestry test. The new rules did not apply to transactions or applications entered into before August 16.
Under the special test, land acquired must be used exclusively or nearly exclusively for forestry activities (maintaining, harvesting and/or establishing a crop of trees for the purpose of plantation forestry, but excluding permanent forestry).
Other consents approved under the special test included the sale of a 137ha property near Whangarei, currently grazing breeding cows, for conversion to plantation forestry, predominantly pinus radiata, to Hong Kong-owned Greenheart Mangakahia Forest Land Ltd.
Ingka Investments Forest Assets NZ Ltd and Ingka Investments Management NZ Ltd were granted consent to acquire a 1038ha sheep and beef farm, Te Maire, in Central Hawke’s Bay which had been continuously owned by members of the founder’s family for the past 100 years. They are owned by Ingka Investments BV, the investment arm of Ingka Group, which is the largest franchisee of IKEA stores internationally.
It was also granted consent to buy a 286ha sheep and beef farm in Waipukurau. Ingka has been buying up land in New Zealand, including properties in the South, for forestry development.
Swiss-owned Corisol New Zealand Ltd received consent to acquire a 716ha sheep and beef farm at View Hill, Oxford, of which it intended to subdivide and sell about 178ha and convert the majority of the remaining land into a commercial plantation forest.
