Overseas investment decision for case 201220092 - Public Sector Pension Investment Board & Guardians of New Zealand Superannuation Fund & President and Fellows of Harvard College

An overseas investment in sensitive land, being the Applicants’ acquisition of rights or interests in 100.0% of the shares of KT1 Co and KT2 Co which owns or controls:

• a freehold interest in approximately 266.3200 hectares of land at Pikowai Road, Matata, Bay of Plenty; and
• a freehold interest in approximately 542.3800 hectares of land at State Highway 5, Waiotapu, Rotorua District; and
• a freehold interest in approximately 37.0630 hectares of land at State Highway 38, Murupara, Kaingaroa Plains, Bay of Plenty; and
• a freehold interest in approximately 866.1875 hectares of land at State Highway 5 Te Haroto, Hawkes Bay; and
• a freehold interest in approximately 25.5774 hectares of land at Taharua Road, Kaingaroa Plains, Bay of Plenty; and
• a leasehold interest in approximately 105.5300 hectares of land at Dun Road, Kaingaroa Village, Rotorua District; and
• a leasehold interest in approximately 143.3616 hectares of land at 1102 Te Ngae Road, State Highway 30, Rotorua District.

​An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 100.0% of the shares of KT1 Co and KT2 Co, the consideration of which exceeds $100m, and assumption of debt to KT1 Co and KT2 Co, the consideration of which exceeds $100m.

The proposed transaction involves the sale of shares in KT1 Co and KT2 Co, together with the assumption of debt, to Public Sector Pension Investment Board, Guardians of New Zealand Superannuation Fund ("GNZSF") and the President and Fellow of Harvard College together with a restructure of the ownership of KT1 Co and KT2 Co.

KT1 Co and KT2 Co hold a 60% interest in Kaingaroa Timberlands Partnership (“KTP”), with the remaining 40% being held by GNZSF.

The proposed transaction will increase GNZSF’s overall ownership interest in KTP and will provide it with greater governance and control over KTP.

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 Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(j) – Mitigating factor