OIO approves Mangatarata Forest sale

Wednesday 1 Dec 2021

 
Ponga Silva Limited, a company owned by German and other interests, has been granted Overseas Investment Office approval to purchase the Tokomaru Bay Forest Estate. The Applicant has applied for consent under the special forestry test relating to forestry activities set out in s. 16A(4) of the Act.

The Applicant is a special purpose vehicle, established to set up a forest investment platform in New Zealand to acquire forestry assets. The Applicant is a wholly-owned subsidiary of a German company.

The Applicant is acquiring a freehold interest in approximately 3,466 hectares of land comprising four adjoining forests (known as the Tokomaru Bay Forestry Estate), including several forestry rights registered over the freehold land.

The land is currently a large scale commercial forest and pastoral farm located in the Gisborne region. The land includes Mangatarata Forest, which contains a sheep and beef farming operation of 841 hectares which will be converted to commercial forestry, with planting expected to occur in 2022. The Applicant plans to hold the Land long term and continue sustainable forest management according to best forestry practices.

The Applicant has identified 26.3 hectares, including a homestead, that it intends to subdivide and sell.

Of the total area (after subdivision) approximately 2,395 hectares will be used for commercial forestry (including 703.5 hectares of new planting). The remaining unplanted land includes native bush and scrub (394 hectares), roads and tracks (104 hectares), and buffer land, set- backs and riparian planting (547 hectares).

Mangatarata Forest (which includes the 841 hectares to be converted to forestry) is a combination of LUC Class 6 (1,116 hectares) and LUC Class 7 (913 hectares).

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