Applicant
Newforest Limited
Case number(s)
201420050
Decision date
Type
Decision
DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision date4 May 2015
Investment
  • An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Greenheart Group Limited which owns or controls a freehold interest in 12,653.0079 hectares of land at Mangakahia Forest Estate.
  • An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Greenheart Group Limited, the value of the assets of Greenheart Group Limited and its 25% or more subsidiaries being greater than $100m.
ConsiderationUp to US$79.5 million, of which US$45 million is paid to Sino-Capital Global Inc.
ApplicantNewforest Limited
Chow Tai Fook Enterprises Limited, Hong Kong (SAR) (60.0%)
Wai Leung Danny Wu, Hong Kong (SAR) (40.0%)
VendorExisting shareholders of Greenheart Group Limited
Sino-Capital Global Inc. (62.82%)
Hong Kong Public (37.18%)
Background

The Applicant is acquiring a forestry estate in Northland, which it has committed to replanting once harvested.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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)(iii) – Increased export receipts
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous vegetation/fauna
17(2)(d) – Historic heritage
17(2)(e) – Walking access
17(2)(f) – Offer to sell seabed/foreshore/riverbed to the Crown

Overseas Investment Regulations 2005
28(f) – Advance significant Government policy or strategy

More informationJohn Strowger/Adrien Hunter
Chapman Tripp
PO Box 2206
AUCKLAND 1140