Overseas investment decision for case 201110027 - Kaingaroa Timberlands and Forest Genetics Limited

Kaingaroa Timberlands
President and Fellows of Harvard College, United States of America (60%)
Guardians of New Zealand Superannuation (40%)

Forest Genetics Limited
Kaingaroa Timberlands (51%)
Carson Family Trust, New Zealand (34.2%)
Phil Wells Family Trust, New Zealand (7.4%)
Juliet Wells Family Trust, New Zealand (7.4%)

Kaingaroa Timberlands currently leases approximately 58 hectares of the property from the Te Ngae Farm Trust from which it operates its Te Ngae Nursery. Forest Genetics also leases 3.67 hectares of the property on which it researches and develops genetically superior varieties of radiata pine seedlings. Forest Genetics’ main customer is Kaingaroa Timberlands. Kaingaroa Timberlands and Forest Genetics intend to surrender their current leases, amalgamate and consolidate the existing leased areas with additional area comprising 17.93 hectares which will be leased by Kaingaroa Timberlands. Kaingaroa Timberlands will sublease part of this land to Forest Genetics. The expanded area that will be leased will enable Kaingaroa Timberlands to expand the Te Ngae Nursery. It will also allow Forest Genetics to expand its seedling business.

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)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(g) – Enhance the viability of other investments