Overseas investment decision for case 202300304 - Ingka Investments Forest Assets NZ Limited & Ingka Investments Management NZ Limited

The Applicants are ultimately owned by Ingka Group (which is the largest franchisee of IKEA stores internationally) and this will be their 17th forestry acquisition in New Zealand.

Approximately a quarter of the Land is currently used predominantly to graze sheep and cattle. The balance of the Land includes 365ha of existing forestry and native bush. Across the whole Land, approximately three quarters of the Land is not currently farm land and has not been cleared for grazing. 

The Land is predominantly LUC classes 6 (1,029ha) and 7 (607ha) with a small area (10ha) of LUC 4. There are two dwellings on the Land which the Applicants will either subdivide and sell off, remove, or use for forestry accommodation. 

The Applicants intend to convert the Land to be used nearly exclusively for  forestry activities by planting approximately 425ha of new trees on the existing pasture land. The Applicants will also be protecting and enhancing the indigenous vegetation. 

The Applicants have committed to offer to supply at least 25% of timber from the Land to domestic processors. 

The main benefits to New Zealand are likely to include: a greater number of jobs; increased revenue; and various environmental, public access, historical heritage and other possible consequential benefits. 

Consent was granted as Ministers were satisfied that the Applicants have met the investor test criterion and that the Investment is likely to result in benefit to New Zealand.