Overseas investment decision for case 200720067 - GTI 8 New Zealand Limited

To acquire:

1. an interest in land which, either alone or together with any associated land of that type, exceeds 0.4 hectares and is or includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; and
2. 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; and
3. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins any scientific, scenic, historic, or nature reserve under the Reserves Act 1977 that is administered by the Department of Conservation and that exceeds 0.4 hectares in area; and
4. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land over 0.4 hectares that includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; and
5. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.

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.

The Investment:
GTI 8 New Zealand Limited (GTI 8), an indirect subsidiary of GTI 8 Investments Acquisition Company Limited, has entered into an agreement for sale and purchase to acquire various parcels of land (the Forest Estate) from East Woodlands Limited, Northwest Woodlands Limited and South Woodlands Limited.

The majority of the Forest Estate is subject to 8 registered forestry rights, 5 of which have been granted to Tiaki Plantations Company (Tiaki) and 3 to OTPP New Zealand Forest Investments Limited (OTPP). These forestry rights are for one rotation only and as the trees are harvested by Tiaki and OTPP over that part of the land and the land returned to GTI 8, the land will be replanted by GTI 8. Additionally, those parts of the land already returned to the vendor which have not been replanted will be replanted by GTI 8.

Rationale for the Investment:
GTI 8 intends to be a long-term investor in the New Zealand forestry industry. GTI 8 intends to nurture, enhance and develop the forest estate as a sustainable, high performing business. GTI 8 believes that its acquisition will create strategic business opportunities which will expand and strengthen the Forest Estate and consequently the New Zealand forestry sector.

The proposal is likely to result in the following benefits:

1. the creation of new job opportunities in New Zealand;
2. greater efficiencies;
3. the introduction into New Zealand of additional investment for development purposes; and
4. the increased processing of New Zealand's primary products.