A German buyer has bought a 2,008ha forest in Gisborne for around $20 million.
Te Rata Forest, which predominantly planted with mature radiata pine and is located 80km north of Gisborne, was purchased by an institutional investor in a deal brokered by Colliers International teams in New Zealand and Germany.
The deal is pending Overseas Investment Office approval.
Warwick Searle, forestry director at Colliers New Zealand, says the transaction highlights the benefits of New Zealand assets right now.
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“Overseas funds are key investors in New Zealand’s forestry sector, but the global pandemic has brought a new set of challenges when it comes to matching offshore capital with local assets," he says.
“While the purchaser was unable to inspect the asset firsthand, we were able to leverage our combined expertise in both New Zealand and Germany to give the buyer a high level of comfort.
“The resulting transaction, which is pending Overseas Investment Office approval, is a great outcome for both our vendor and the buyer."
Nils von Schmidt, co-head of land and forestry at Colliers Germany, says New Zealand’s sustainability credentials were important in securing the deal.
“Our client was interested in a number of factors including sustainable, profitable and climate change-resistant timber production as well as compliance with the social and ecological criteria of the United Nations' sustainability targets.
“New Zealand has been pursuing an effective CO2 trading scheme since 2008, in which forestry plays a key role."
Te Rata Forest was put up for sale as part of the substantial Timber No. 1 Estate, which also comprised one forest in Waikato and two in Southland.
The 242ha Waikato forest was bought late last year by an Australian entity, while the Southland forests, which have a combined stocked area of 1,367ha, were purchased by an American entity.
Timber No. 1 Estate was marketed by Searle – who last year transacted the first forestry sale under the government’s new overseas investment rules – with forestry broker Angus Robertson.