Overseas investment decision for case 201220020 - Summit Forest Management of NZ Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares of Juken NZ Northern Plantations Limited which owns or controls an interest in approximately 8030 hectares of leasehold land and 816 hectares of freehold land located in Northland.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 100% of the shares of Juken NZ Northern Plantations Limited, the consideration of which exceeds $100m.

The Applicant intends to maintain and develop the forests on the relevant land in order to produce timber for domestic processing and export markets.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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)(a)(vi) – Increased processing of primary products
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(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(i) – Economic interests