Applicant
Craigmore Sustainables (Forestry) N.V & Craigmore Sustainables LLP
Case number(s)
201210007
Decision date
Type
Decision
DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date13 June 2012
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of 100% of the shares of Forestry New Zealand Limited which owns or controls a freehold interest in 8,688.0269 hectares of land located at Tiniroto Road (Riversdale - Wairoa), Sugar Loaf Road (Birch Hill – Pongaroa), Duncan Road (Makiri – Gisborne), Poroporo Road (East Cape), Oio Road (Patua – Taumaranui), Mangapoike Road (Te Puna – Wairoa) and Bruce Road (Waihora - Gisborne).
Consideration$17,071,667
ApplicantCraigmore Sustainables (Forestry) N.V & Craigmore Sustainables LLP
New Zealand Public (40.2%)
United Kingdom Public (24.64%)
United States Public (12.6%)
Netherlands Public (11.77%)
Various overseas persons (10.79%)
VendorCraigmore Farming Co. Limited
New Zealand (100%)
Background

The Applicant intends to manage the existing forestry operations together with converting and extending marginal farming land into plantation forest.

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) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous vegetation/fauna
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(d) – Owner to undertake other significant investment
28(f) – Advance significant government policy or strategy
28(i) – Economic interests
28(j) – Mitigating factor

More informationChristina Lefever
Duncan Cotterill
PO Box 5
CHRISTCHURCH