Overseas investment decision for case 202100799 - Kauri Forestry LP

The Applicant, a repeat investor, has been granted consent to acquire the Land under the special test relating to forestry activities set out in section 16A(4) of the Act. 

The Applicant is a New Zealand limited partnership, established as part of the Craigmore Sustainables Group. It is also a forestry-specific investment vehicle and already holds a significant amount of land in New Zealand for forestry investment purposes. The investment will be managed by the New Zealand based management team.

The Land is currently used primarily as a sheep and beef breeding and finishing block. The Applicant intends to convert the Land to commercial forestry, establishing and maintaining plantation forest (predominantly 'Pinus radiata') over parts of the Land assessed as being best suited to forestry. The Applicant has estimated approximately 920 hectares of the Land is best suited to planting after allowing for existing trees including scrub and poplars (approx. 143 ha.), unplantable land (approx. 82 ha.) or setbacks (approx. 105 ha).

The Applicant proposes to subdivide and sell a total area of approximately 20 ha., into 2 parcels, each containing one house. The dwellings are not required for forestry activities. 

Planting is intended to commence on the Land in 2022 and the trees will be harvested in approximately 25 to 30 years.

By way of background, the Land Use Class (LUC) details for the Land are: LUC Class 2 (approx. 27 ha.), LUC Class 6 (approx. 391 ha.), and LUC Class 7 (approx. 859 ha.).