IKEA parent company among four overseas investors to secure farms for forestry conversion

Photo / 123R

RNZ

The Overseas Investment Office has approved the sale of a further four farms to overseas investors to plant into forestry.

Each month the office released decisions made under the Special Forestry Test, which was introduced in 2018 to encourage more tree planting.

The Government announced it would end the test to help ensure the right forest is planted in the right place.

This month's Overseas Investment Office (OIO) decision outlined the sale of four farms including the sale of an 1100 hectare sheep and beef farm in Waimumu, near Gore, to Dutch company Ingka Investments - a parent company of furniture giant IKEA.

The company intended to convert the farm into a pinus radiate plantation forest.

Last month the company bought Stoneridge Farm in Hawke's Bay, which had 41 hectares of existing forest.

The majority of the farm would be planted in rotation forest in the next two years with harvest taking place in 27 to 30 years.

Other decisions just released by the OIO include the sale of Te Papa Station, a sheep and beef farm in Ormond Gisborne.

It was sold to Canadian company Forestry Investments Limited for $6,825,000.

Of the 442 hectare farm, 365 hectares would be planted plantation forest which would be harvested in 25-30 years, while 50 hectares would be turned into native bush.

Totara Forestry Services Limited acquired Glentui Station an 850-hectare sheep and beef breeding operation in Tolaga Bay, 550 hectares of which would be planted as rotational forest.

Austrian company Cerberus Vermogensverwaltung was approved to buy Birch Hill, a 1500 hectare farm in South Wairarapa.

"The applicant intends to convert the land to a plantation forest over approximately 1138 hectares of the land best suited to planting.

"The remaining land will be allocated to infrastructure, native plantings, and various setbacks," the Overseas Investment Office decision said.

- RNZ