Overseas investment decision for case 202200124 - Summit Forests New Zealand Limited

The Applicant is one of the largest forestry owners/managers in New Zealand, managing over 50,000 hectares (net stocked area) of forestry estate. The Applicant is a wholly owned subsidiary of Sumitomo Corporation.

The Applicant has been granted a standing consent for forestry activities, to allow it to acquire and continue to operate existing production forests. The Applicant intends to develop a more efficient and sustainable long term forestry business which is able to provide stability of wood flow to local processors. It intends to use the standing consent to acquire and amalgamate small – midsized forestry assets and larger forestry assets in existing or new regions. 

The standing consent is limited to:

• existing production forests, excluding farm land and residential land only; 
• no more than 10,000 hectares of land;
• no more than 2,500 hectares per transaction;
• up to 75 transactions;
• land in the North Island only, but excluding land in the Gisborne Region and Wairoa District;
• the standing consent cannot be used to acquire an investment in a strategically important business; and
• transactions must be entered into by 6 October 2026, and be completed by 6 October 2027. 

Consent was granted as the Applicant met the investor test criterion, the Applicant has demonstrated the conditions of the standing consent were likely to be met, the Applicant has adequate processes in place to meet the requirements of the special forestry test and the Applicant has a strong track record of compliance.