| Decision | Consent granted Section 12(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | The Minister for Land Information and the Associate Minister of Finance |
| Decision Date | 11 July 2022 |
| Pathway(s) | Special forestry test (One-off purchase) |
| Investment | An overseas investment in sensitive land, being the acquisition of freehold interests in approximately 4,912.3086 hectares at 2987 Mata Road, Raukumara (known as Huiarua Station) and approximately 1,200.6967 hectares at Fernside Road, Tauwhareparae (known as Matanui Station), East Coast (together, the Land). |
| Consideration | $88,000,000.00 plus GST (if any), being:
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| Applicant | Ingka Investments Forest Assets NZ Limited and Ingka Investments Management NZ Limited Netherlands (100%) |
| Vendor | Christopher's Management Services 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. Under this test land acquired must be used exclusively or nearly exclusively for forestry activities (maintaining, harvesting, and/or establishing a crop of trees for the purpose of plantation forestry, but excluding permanent forestry). Whenever a crop of trees is harvested a new crop must be replanted. 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 is currently used as two large, adjoining farming stations in the Gisborne region, with a combined area of 6,113 ha. Huiarua and Matanui stations are currently run as sheep and beef breeding operations with some existing forest in radiata pine (615 ha and 88 ha respectively). The Applicants plan to establish and maintain approximately 4,907 ha of rotation forest during the 2023 to 2026 planting seasons. The crop planted will be predominantly radiata pine, although the Applicants will consider planting up to 10% of the Land with alternative commercial species (such as redwood, eucalyptus, macrocarpa, douglas fir) to create more biodiversity. The Land currently contains approximately 741.5 ha of existing native bush and scrubs, which the Applicants intend to retain as native bush and scrub areas. The Applicants also intend to plant a further approximately 173.6 ha in riparian setbacks for erosion control and to minimise any environmental impacts around watercourses and waterbodies. Riparian setbacks will be planted either in Manuka or other native species. A condition of consent requires the Applicants to harvest the crop of trees within 35 years of planting (for radiata pine) and within 50 years of planting (for alternative commercial species). Replanting will occur following harvest. The Applicants plan to subdivide and sell approximately 30 ha including 11 residential dwellings, with another dwelling being retained for forestry worker accommodation. Mata School is situated on about 2 ha of land (subject to a licence to occupy granted to the Crown) at Huiarua Station. The Applicants advise that they support Mata School continuing to operate on the Land and have committed to consult the Secretary of Education regarding the ongoing licence for Mata School. The Land is a combination of
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| More information | Martin Thomson DLA Piper (Auckland) PO Box 160 Auckland |
See the attached assessment report linked below, which was published in response to an Official Information Act request:
Ingka Group’s application for consent to acquire Huiarua Station and Matanui Station
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