| Decision | Consent granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 21 March 2022 |
| Pathway(s) | Forestry (Special forestry test - one-off purchase) |
| Investment | An overseas investment in sensitive land, being the acquisition of a freehold interest in approximately 609.6773 hectares of land at 668 and 708 Old Hill Road, Porangahau, Central Hawke’s Bay (the Land). |
| Consideration | $8,424,000 |
| Applicant | Ingka Investments Forest Assets NZ Limited and Ingka Investments Management NZ Limited Netherlands (100%) |
| Vendor | (1) Alison Martin and David Martin as trustees of the Jemdrew Trust and (2) Stoneridge Farming Company Limited New Zealand (100%) |
| Background | The Applicants applied for consent under the special test relating to forestry activities set out in section 16A(4) of the Act. The Applicants are two New Zealand incorporated companies who will acquire the Land, and hold a forestry right over the Land, respectively. The Applicants are owned by Ingka Investments B.V., the investment arm of Ingka Group, which is the largest franchisee of IKEA stores internationally. The Land, currently known as “Stoneridge Farm”, is currently in use as a sheep and beef breeding operation, also with 41 hectares of existing forest. The Applicants plan to establish and maintain approximately 508 hectares of rotation forest (radiata pine) over the 2022 and 2023 planting seasons. The trees will be harvested after approximately 27 to 30 years, and replanting will occur following harvest. The Applicants have identified approximately 3.2 hectares including a residential dwelling that they intend to subdivide and sell. The remainder of the Land will be unplanted, including native bush (31.6 hectares), buffer land, setbacks, riparian areas etc. (21.6 hectares), and unplantable ridges, gullies, steep land (4.3 hectares). The Land is a combination of LUC Class 3 (12 hectares), LUC Class 6 (210 hectares), and LUC Class 7 (388 hectares). |
| More information | Martin Thomson DLA Piper (Auckland) PO Box 160 Auckland |
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