Overseas investment decision for case 200820006 - Grandy Lake Forest (NZ) Limited

To acquire:

1. 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
2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area).

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.

Background to the Investment
The Applicant has agreed to purchase the land, which is currently a sheep and beef farm.

Outline of the Investment:
The Applicant is purchasing the freehold interest in the land.

Rationale for the Investment
Purchasing the land will allow the Applicant to convert almost the entire farm to commercial forest (principally pinus radiata).

The proposed overseas investment will, or is likely to, benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits:

Overseas Investment Act 2005:
s17(2)(a)(i) - new job opportunities.
s17(2)(a)(v) - introduction into New Zealand of additional investment for development purposes.
s17(2)(b) - existing areas of indigenous vegetation.
s17(2)(e) - walking access.
s17(2)(f) - special land.

Overseas Investment Regulations 2005:
r28(e) - previous investments of benefit to New Zealand.