Overseas investment decision for case 201510065 - China National Forest Products Corporation

An overseas investment in sensitive land, being CFPC (New Zealand) Co Limited’s acquisition of:

• a freehold interest in approximately 1,668.2157 hectares of land at Mahoe Estate in the Taupo District; and
• a freehold interest in approximately 1,921.6976 hectares of land at Madaket Estate in the Whangarei District.

An overseas investment in significant business assets, being CFPC (New Zealand) Co Limited’s acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m, that property being various North Island forestry estates known as the Mahoe Estate and the Madaket Estate including the freehold land, Crown Forestry Licences and other associated assets, including sensitive land.

The Applicant plans to increase the average harvest volume from the forest estates which is likely to result in increased efficiency. The proportion of logs exported from the forest estates is also likely to increase resulting in an increase in export receipts.

The Applicant plans to manage the forest estates in accordance with the FSC principles which is likely to result in environmental and other benefits. The Applicant has also agreed to permit walking access across the forest estates where reasonable.

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)(iii) – Increased export receipts
17(2)(a)(iv) – Increased efficiency
17(2)(b) – Indigenous vegetation/fauna
17(2)(e) – Walking access
17(2)(f) – Offer to sell 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(e) – Previous investments
28(f) – Advance significant Government policy or strategy