Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Massive forestry landholding placed on the market for sale

Media Release

24.11.2016


One of New Zealand’s largest forestry land holdings has been placed on market for with a 60-year tenancy agreement in place.

Massive forestry landholding placed on the market for sale

One of New Zealand’s biggest privately-owned forestry land portfolios – comprising five separate plantations – has been placed on the market for sale.

The extensive land portfolio is owned by Forest Growth Holdings Ltd, a Southland based company. There is a 60-year forestry right leased to Wairarapa Estate Ltd, an Australian-based forestry investment company.

The portfolio encompasses more than 3,061 hectares of trees spread across the Manawatu and Wairarapa districts in the North Island.

Combined, the forests generate an annual rental income of $216,869 + GST for the landowner. The tenant is a real estate investment firm specialising in sustainable forestry, land management, timber processing, and conservation businesses.

The portfolio of five land holdings are located in the Lower North Island are being marketed for sale through a tender process closing on December 1 by Bayleys Southland salesperson Hayden McCallum and Rob Deal from Bayleys Wairarapa. Only the land, and not the plantings are being sold.

Mr McCallum said the blocks were being sold – either individually or as one parcel – with a 60-year lease in place to a quality tenant.

· Craigie Lea Forest – 1670 hectares generating annual rental of $125,000 + GST per annum

· Erindale Forest – 878 hectares generating annual rental of $53.500 + GST per annum

· Tinui Forest - 190 hectares generating annual rental of $14,938 + GST per annum

· Beehive Creek Forest – 168 hectares generating annual rental of $13,131 + GST per annum

and

· Flat Point Forest – 154 hectares generating annual rental of $10,300 + GST per annum.

All five blocks are freehold titles, with rental reviewed annually and any potential increases linked to the Consumer Price Index. They can be purchased in any configuration ranging from one to five lots.

“From an investment perspective, the 60 year lease term attached to all of the blocks would be one of the longest terms for a commercial occupancy anywhere in New Zealand,” Mr McCullum said.

“Obviously this is dictated by the long growing and harvesting period of the pine plantations, but none the less, offers an extremely long-term investment opportunity.

“The quality of New Zealand’s pine over the likes of its competitors from Australia ensures the wood’s suitability for the construction and housing sectors.”

Mr McCullum said carbon credits produced by the forests would remain with the forestry right holder. As leasee, the company was responsible for watering and tending the pine trees throughout their life cycle, as well as maintaining the access roads networking the plantations.

“The company, which will be the occupier of the land, has a long-term view of economic and market trends for its products, simultaneously supported by operating under environmentally-friendly and sustainable practices,” he said.

“For venture capitalists abiding by ‘ethical investment’ principles when identifying investment opportunities, forestry blocks certainly meet all the criteria. Pine forests are environmentally-positive, they are carbon-positive, they generate foreign income for domestic owners, and the end product they deliver is socially beneficial.”

Mr McCallum says it was very rare to have such a large portfolio of land with guaranteed returns in place. This is a great long term investment opportunity.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Chartered Accountants: COVID-19 Fails To Knock Kiwi Investor Confidence, But More Disclosure Wanted

Three months of COVID-19 lockdown and investment turmoil has done little to knock confidence in New Zealand capital markets and listed companies with overall investor sentiment very similar to 2019, an investor survey held in mid June shows. However, ... More>>

ALSO:

Taxation: Black-Market Tobacco Sidesteps $287 Million In Excise Tax

Year-on-year increases in consumption of illicit tobacco in New Zealand have seen illegal trade swell to 11.5% of the total market. If consumed legally, illicit products would have netted the Government $287 million in excise tax during 2019. Independent ... More>>

ALSO:

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>

ALSO:

Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>

ALSO:

Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO: