Overseas investment decision for case 202200473 - Wenita Forest Products Limited

Special forestry (One-off purchase)
This transaction was entered into before 16 August 2022 and so the old special forestry test applies. See here for more information: Getting to the root of farm to forestry conversions

National interest assessment

Wenita Forest Products Limited 
(Netherlands 34.3%)
(United Kingdom 27.7%)
(ANZFF2 NZ Limited 38%)

ANZFF2 NZ Limited is 100% owned by ANZFOF2 NZ Pty Limited (ANZFOF2 NZ). ANZFOF2 NZ is wholly owned by The Trust Company (Australia) Limited in its capacity as the trustee of New Forests Australia New Zealand Forest Operating Fund 2. This fund and New Forests Australia New Zealand Forest Investment Fund 2 form a stapled entity known as New Forests Australia New Zealand Forest Fund 2 (A2). A2 is owned by certain overseas investment funds. A2 is managed by New Forests Asset Management Pty Limited. 
 

The Applicant is a New Zealand company involved in establishing, managing, and harvesting timber for sale in domestic and international markets. The Applicant is part of the New Forests Group (New Forests) which is well known to LINZ.

The Land is currently being used as a mixture of farm land (72.2 hectares) and forestry land (74.1 hectares). 

The Applicant intends to maintain the existing forestry activity, whilst converting the farm land into plantation forest (predominantly radiata pine). This would increase the extent of plantation forestry activities on the Land from approximately 74 to 144 hectares. 

Approximately 41.7 hectares will remain unplanted. This area includes 40 hectares of existing native bush and a further 1.7 hectares to accommodate infrastructure such as roads and tracks. 

The Land is a combination of LUC 4 (approximately 26 ha) and LUC 6 (approximately 160 ha).

This is a transaction of national interest under the mandatory criteria in the Overseas Investment Act 2005. This is because the investment involves non-NZ government investors. The Applicant falls within the definition of 'non-NZ government investor' due to an indirect ultimate beneficial interest by the UK and Dutch governments through pension funds (including Pension Protection Fund and Stichting Pensioenfonds ABP).

Consent was granted as the Applicant has met the investor test criterion and the special forestry test criteria.  The Minister of Finance has decided that the investment is not contrary to New Zealand’s national interest.