Overseas investment decision for case 202100212 - Taieri Forests Limited

An overseas investment in sensitive land and significant business assets, being the Applicant’s acquisition of:

• 100% of the shares in Wenita Forest Products Limited (Wenita) which owns approximately 5,814 hectares of freehold land and approximately 23,368 hectares of forestry rights; and 
• all of the interests of Sinotrans & CSC Holdings Co., Ltd in connection with the loan advanced to Wenita. 

Taieri Forests Limited
Netherlands 34.3%
United Kingdom 27.7%
ANZFF2 NZ Limited 38% (refer below)

ANZFF2 NZ Limited is 100% owned by ANZFOF2 NZ Pty Limited (ANZFOF2 NZ). ANZFOF2 NZ is wholly owned by The Trust Company (Australia) Limited in its capacity as the trustee of New Forests Australia New Zealand Forest Operating Fund 2. This fund and New Forests Australia New Zealand Forest Investment Fund 2 form a stapled entity known as New Forests Australia New Zealand Forest Fund 2 (A2). A2 is owned by certain overseas investment funds. 

A2 is managed by New Forests Asset Management Pty Limited.

Sinotrans (NZ) Limited (62% Share Vendor)
(People’s Republic of China 100%)

Sinotrans & CSC Holdings Co., Ltd (Shareholder Loan Vendor)
(People’s Republic of China 100%)

ANZFF2 NZ Limited (38% Share Vendor)
The ownership of ANZFF2 NZ Limited is as set out above. 

The Applicant applied for consent under the special test relating to forestry activities set out in section 16A(4) of the Act. 

The Applicant is a New Zealand registered company recently incorporated for the purpose of carrying out the investment. The Applicant is owned by three overseas entities, including 38% by ANZFF2 NZ Limited which will sell its shares to the Applicant in return for a 38% share of the Applicant to enable the shareholding of the Wenita to be consolidated into one entity ultimately managed by New Forests Asset Management Pty Limited. 

Wenita operates a forestry business primarily in the Otago region, which involves management of its own plantation forestry assets and supporting activities, as well as providing forestry and log marketing services to other forest owners. Wenita’s forestry estate comprises 5,814 hectares of freehold land (Mount Allen Forest and two smaller forests), and three forestry rights over 23,368 hectares of land (Otago Coast Forest, Berwick Forest, and Saffill Forest). 

The forestry estate is already, and will continue to be, used for commercial forestry purposes, with approximately 24,170 hectares currently stocked in pinus radiata and 598 hectares awaiting replanting.  

The consent includes conditions requiring the Applicant to maintain existing arrangements (for protected area management plans and walking access), maintain existing log supply arrangements, and a condition requiring the Applicant to implement the conditions of an existing Overseas Investment Office consent (case: 201720046) in relation to the land. 

The Minister of Finance has determined that the investment is not contrary to New Zealand’s national interest.