Overseas investment decision for case 201520042 - Summit Forests New Zealand Limited

An overseas investment in sensitive land in the Northland region, being the Applicant's acquisition of a freehold interest in approximately:

• 559.0600 hectares of land at Otangaroa Forest Estate; and
• 38.7730 hectares of land at Fern Flat Forest Estate; and
• 121.4884 hectares of land at Dutton Road Forest Estate; and
• 8.0000 hectares of land at Waiotehue Road Forest Estate; and
• 24.0840 hectares of land at Carman's Block Forest Estate; and
• 26.1020 hectares of land at Humphries Road Forest Estate.

Asian Power International (NZ) Limited
Lau Siu Tuen Lucy Chan, Hong Kong (SAR) (100.0%)

Penzance Developments Limited
Lau Siu Tuen Lucy Chan, Hong Kong (SAR) (100.0%)

The Applicant intends to maintain and develop the forests on the relevant land in conjunction with their existing Northland forestry estates, in order to produce timber for domestic processing and export markets (with the main focus being increased supply to Northland sawmills).  A new export coordinator position will be created, public walking access will be improved and the Applicant will extend its Forest Stewardship Council certification over the land.  The Applicant will also contribute $15,000 in sponsorship to community projects.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Jobs
17(2)(a)(vi) – Increased processing of primary products
17(2)(e) – Walking access
17(2)(f) – Offer to sell seabed/foreshore/riverbed to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments
28(g) – Enhance the viability of other investments