Overseas investment decision for case 201220072 - China National Forest Products Trading Corporation & China National Forest Products Industry Corporation

An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately:

• 2,132 hectares (Coroglen Forest – Coromandel District);
• 326 hectares (Endean Forest – Rotorua District);
• 434 hectares (Kanuka Forest – Gisborne District);
• 438 hectares (Taharoa Forest – Waikato District);
• 966 hectares (Kopu Forest – Coromandel District);
• 1,195 hectares (Patetonga Forest - Waikato District);
• 402 hectares (Putawa Forest – Waikato District);
• 744 hectares (Raglan Forest - Waikato District);
• 7,243 hectares (Rototuna Forest – Kaipara District); and
• 245 hectares (Waipuna Forest – Wairarapa District).

The Applicant will own the land as a long term commercial forestry investment, managing the plantation forests in accordance with best international silvicultural practices. It is intended that the forests will be re-planted following harvest to maintain continuity of supply.

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)(iv) – Greater productivity and efficiencies
17(2)(b) – Enhanced indigenous vegetation/fauna
17(2)(e) – Enhanced walking access
17(2)(f) – Offer to gift foreshore and riverbed to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(d) – Owner to undertake other significant investment
28(f) – Advance significant Government policy or strategy
28(i) – Promote economic interests