Foreign investor buys into Kaingaroa Forest

The Public Sector Pension Investment Board, one of Canada's largest pension investment managers, has bought 30 per cent of the shares in Kaingaroa Forest from Harvard Management Company, the endowment fund of Harvard University.

Harvard had a 60 per cent stake in Kaingaroa Forest and will retain a 28.75 per cent stake in the Forest.

As part of the transaction, the New Zealand Superannuation Fund had bought an additional 1.25 per cent stake, taking its total to 41.25 per cent.

The change in shareholding which was settled last week followed approval by the Overseas Investment Office in April.

The 178,000ha forest estate is widely recognised as one of the world's premier softwood plantations. Operational forest management will continue to be provided by Rotorua-based Kaingaroa Timberlands.

The partners in Kaingaroa own the harvesting rights to the plantation with most of the underlying land owned by local Iwi.

New Zealand Superannuation Fund manager of timber Neil Woods said the transaction needed Overseas Investment Office approval as 2000ha of the 178,000ha of trees were on freehold or leasehold land.

This included 542ha of trees on State Highway 5 at Waiotapu, 266ha on Pikowai Rd at Matata, 143ha at 1102 Te Ngae Rd at the Te Ngae Nursery, 105ha at Dun Rd in Kaingaroa Village, 866ha off State Highway 5, at Te Haroto in the Hawkes Bay and two much smaller sections in Murupara and Taharua Rd on the Kaingaroa Plains.

Mr Woods said it would be "business as usual".