The government has approved the sale of a further 7100ha of sheep and beef farms to foreign buyers to convert to forestry, but also announced a tightening of rules governing future such sales.
Two neighbouring East Coast stations, Huiarua (4912ha) and Matanui (1200ha), are in the latest tranche of five properties to be sold to foreign buyers that have been approved by the Overseas Investment Office (OIO).
The two East Coast farms were bought by Ingka Group, the largest franchisee of IKEA stores internationally, and it plans to plant 4900ha in rotation forest between 2023 and 2026.
Ingka Group has in recent months bought several properties, including a large farm in South Otago.
Three other sales approved in June by the OIO are for a 421ha property at Tuapeka, bought by Swiss company Corisol; 236ha at Masterton, purchased by Austrian company Johannes Trauttmansdorff-Weinsberg; and 333ha at Hastings to Greendom, owned by Italian and Swiss interests.
All these sales were approved under the OIO’s special forestry test, but the government has announced that applications by foreign nationals to purchase land for conversion to forestry after August 16 will be treated under the more stringent “benefit to New Zealand” test.
Under the special forestry test, applicants must use the land exclusively, or nearly exclusively, for forestry, replant after harvesting unless exempt, and not live on the land.
Applicants will have to show benefits to the economy and the natural environment, promote public access and protection of historic heritage, advance a significant government policy and show oversight or participation of New Zealanders and consequential benefits.
The OIO has also approved a land sale under the “benefit to NZ” classification due to the jobs it will create and the value of the investment.
It approved the purchase by a Netherlands company, Kempen Capital Management and Paheko Orchards, of 65.6ha at Lowburn in Central Otago for $4.950m. Kempen plans to plant 45ha in cherries and 11.6ha into a native forest. Nine hectares will be used for auxiliary facilities.
