Sunday, August 14, 2022

OIO gives forestry sales green light

Neal Wallace
The Overseas Investment Office approved the sale of two farms on the East Coast, one in Wairarapa and another in Southland to European and Canadian interests.

Foreign buyers have been given permission to buy a further 4000ha of sheep and beef farmland for conversion to forestry.

In May the Overseas Investment Office approved the sale of two farms on the East Coast, one in Wairarapa and another in Southland to European and Canadian interests.

This follows approval in April for the sale of six farms covering 4000ha in Southland, Wairarapa, Hawke’s Bay, East Coast and Northland.

The latest round of approvals includes the 442ha Te Papa Station at Gisborne to be sold to Canadian company Forestry Investment Ltd.

Nearly 400ha is classed as land use class six and seven.

The property adjoins an existing forestry block owned by the purchasers.

Totara Forestry Services, backed by European interests and with links to a partnership with Craigmore Sustainables Group, has bought the 849ha Glentui Station in Tolaga Bay.

Most of the farm is classed as land use class seven.

Dutch company Ingka Investments, the largest franchisee of Ikea stores in the world, has bought an 1118ha farm at Waimumu near Gore, of which 977ha will be planted.

Nearly 200ha is classed as land use class three and the balance class six.

This is the third farm it has bought for commercial forestry.

Last year it bought Wisp Hill, a 5500ha sheep and beef farm,in South Otago, and recently it bought a 610ha Hawke’s Bay property.

Birch Hill, a 1576ha property near Martinborough, has been sold to Cerberus Vermogensverwaltung, an Austrian-based existing forestry investor that intends to plant 1138ha in pinus radiata.

The OIO decision states 1300ha is classed as land use class six and seven.

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