Overseas investment decision for case 202100217 - Ernslaw One Limited

The Applicant has been granted consent to acquire the Land under the special test relating to forestry activities that is set out in section 16A(4) of the Act. The Applicant has also been granted a farm land advertising exemption under section 20(a) of the Act by reason of the circumstances relating to the overseas investment. 

The Applicant and Vendors are neighbours and the proposed subdivision is the result of a boundary adjustment. The Land will be amalgamated with adjoining forest land already owned by the Applicant.

The Applicant is one of the largest private forestry owners in New Zealand (approximately 110,000ha of productive forest land) and is mostly beneficially owned and controlled by the Tiong family from Malaysia. 

The Vendors use the Land as part of a sheep and beef farm, and the Applicant intends to develop the Land into a commercial forest. Planting is intended to commence on the Land in 2022 and the trees will be harvested in approximately 25 to 30 years. 

The Applicant plans to plant approximately 400ha. The remainder of the Land will be unplanted areas associated with forestry activities, including scrub and bush to be retained (20ha), infrastructure (5ha) and buffer land (5ha). 

The Applicant has agreed to create public access esplanade strips alongside two waterways on the Land and has agreed to expend $5,000 every five years on wilding pine control until 2045.

By way of background, the majority of the Land that is the subject of this application is steep and in Land Use Capability classes 6 to 8 (approximately 420 ha) which is generally considered more suitable for forestry. There are no buildings on the Land.