Forest investment applications running high
Wednesday 4 Sep 2019Forestry deals continue to keep the Overseas Investment Office (OIO) busy and 16 consents have been approved since the new streamlined forestry test was introduced in October 2018. OIO approved five consents in July totalling 6500ha from overseas buyers to buy land for forestry purposes.
Consents for the January to June period totalled 47, covering a net land area of 14,483ha, well up on the 5559ha recorded for the corresponding period in 2018.
These included the acquisition of a 4273ha parcel in South Wairarapa by Swiss-German owned Kauri Forestry, 711ha in Wairoa to Te Au Ltd of Singapore, 217ha at Kennington Rd, Marlborough to Australian entity Marberry and two forest lots totalling 1200ha in Port Underwood, Marlborough, to UK-based NZ Forest Industries and Issoria Offshore.
The forestry test means that land is used almost exclusively for forestry activities. The OIO may also place conditions on the consents to ensure existing arrangements remain in place, or to place new provisions on the use of the land.
The total asset value of OIO-approved deals for the first six months amounted to $3.6billion, versus $838.4million for the comparable 2018 period.
Source: Otago Daily Times
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