| Decision number | 200620079 |
|---|---|
| Application number | 200620071 |
| Date | 14 December 2006 |
| Offeror/applicant | Middle Mount Forest Limited |
| Ultimate applicant beneficial ownership | 100 percent - Switzerland, Henni (Heinrich Martin) |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 100 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | City Forests Limited 100 percent - New Zealand, Dunedin City Council |
| Business activities | Agriculture - Scrub/Native Bush Forestry |
| Details of land involved | 669.7289 hectares of freehold situated at Heenan Road, Opio, Southland being CT SL12A/221 (Southland Registry). |
| Regions involved | Southland |
| Total consideration | $3,238,000 |
| Consent sought | To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale | The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987. Middle Mount Forest Limited (Middle Mount) proposes to acquire the subject property which has 516.9 hectares planted in radiata pine and 6.9 hectares planted in douglas fir between 1982 and 1985. Middle Mount has previously received consent in April 2006 to acquire 802.957 hectares of land for a forestry investment (refer D200610041). Middle Mount advises that harvesting of the forest is scheduled to be undertaken between the years 2008 to 2012. Middle Mount advises that upon completion of harvesting it is likely that half of the property will be planted while half will be converted to farming use. Middle Mount advises that the acquisition is likely to provide economies of scale to Middle Mount's New Zealand forestry investments. The proposal is likely to result in the following benefits:
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| Contact | Stephen Grant Gallaway Cook Allan PO Box 143 DUNEDIN |