Last year, Ingka Investments — a subsidiary of Ingka Group, the largest retailer of Ikea home furnishings — purchased 5500ha at Wisp Hill in South Otago for its forestry programme.
As well as that, last month it also was granted Overseas Investment Office approval to buy 1118ha in Koneburn Rd, Gore.
It also had two other properties in Central Hawke’s Bay.
Netherlands-based Ingka Investments forestland investment manager Andriy Hrytsyuk has been on a trip of the country looking at the company’s recent investments, which included a stop in Otago and Southland.
Speaking from Auckland about his trip, Mr Hrytsyuk said the trip’s purpose was to meet stakeholders to communicate that it wanted to be a good neighbour.
Mr Hrytsyuk was keen to stress they were not buying New Zealand land to sell carbon credits or offset its climate footprint.
"We’re in the timber business and earn a return from selling wood," he said.
Asked whether the company understood why buying prime farming land was controversial, he admitted they did not, to begin with.
"We are learning that it is not so straightforward and there are a number of rational and emotional reasons behind it, but we believe we have a strong case for the social impact on jobs and the environment.
"We know we have to have good communication to explain that ... we can talk a lot of nice things but we have to show the facts," he said.
At Wisp Hill, about 300ha of gorse had been removed so far and the first 274,000 of three million seedlings had been planted.
About 40ha of manuka had also been planted and 20km of all-weather roading built.
Mr Hrytsyuk said about 300ha farming land was being sold and, "we want the best land for farming to stay in farming".
Ingka Investments was trying to take a long-term approach to its decision-making.
"I know the decisions I make now, I’m not going to see the results," Mr Hrytsyuk said.
