Ngāi Tahu Forestry has been given the green light by the Overseas Investment Office to sell the harvesting rights of its 26,700ha forestry estate on the West Coast.
The rights have been acquired by West Coast Forests Ltd Partnership, a newly-established investor ultimately owned by Canadian investment funds.
The underlying freehold land is owned by Ngāi Tahu Forestry, which would acquire a 15% interest in the partnership as a joint-venture partner.
In the decision released this week, the OIO said consent was granted as the applicant had met the investor test criterion and the special forestry test criteria.
The Minister of Finance had decided the investment was not contrary to New Zealand’s national interest. The financial consideration for the 16 forests was withheld.
In July, Ngāi Tahu Holdings announced it had agreed to sell the 35-year cutting rights of its West Coast plantations to the new joint venture, pending the OIO approval.
The whenua was not included in the sale, which was only for a single rotation of cutting rights, whereafter the forests returned fully to Ngāi Tahu ownership.
Chief executive Todd Moyle said the sale of the cutting right was a pragmatic decision as Ngāi Tahu Holdings continued to adapt to a difficult economic climate while also maintaining its commitment to the West Coast.
“Last year we signalled we would be looking to free up additional capital. This is effectively a pre-sale of our trees to give us more certainty and flexibility.
“Ngāi Tahu Holdings has an intergenerational approach, and we remain committed to Te Tai o Poutini for the long term. Our 15% share in the joint venture and a director on the board ensures we retain oversight over the operations.”
