South Island forest holdings for sale after Invercargill city subsidiary cuts into its assets

An estate of 14 South Island forests is for sale following Invercargill City Council’s decision to divest its forestry assets.

The forests, in Southland, Otago and Nelson/Marlborough, have a combined area of 3599ha and a total productive area of 3058ha, stocked mostly with radiata pine.

They have been maintained under a full silviculture regime to ensure the trees provide multiple options at harvest time.

The forests are in regions well known for quality crops, as well as providing excellent access to domestic processing and export options.

The estate is being sold by Invercargill City Forests Ltd, a subsidiary of Invercargill City Council’s holding company, Invercargill City Holdings Ltd.

Colliers International has been appointed to handle the sale. Forestry director Warwick Searle says it is a rare opportunity to secure a cornerstone holding in the forestry market.

“With locations that offer access to both quality domestic processors and efficient export log ports, this is a superb opportunity to own an exceptional estate.

“The forests have a total stocked area of 2999ha, principally established with radiata pine as well as smaller sections of douglas fir and other minor species.

“A further 59ha is awaiting replanting while the remaining freehold land has either been land-banked or is unproductive.

“The age profile of the estate is bimodal, with substantial areas planted between 1994 and 2000, plus a significant portion established from 2012 to 2019.

“The estate can be purchased in entirety or separately by region, with flexibility around the purchase of Les Pullar forest in South Otago.”

Forestry broker Angus Robertson says the Southland portion of the estate comprises nine forests with a total combined gross area of 2442ha and a productive area of 2009ha.

“Significant roading and harvest infrastructure throughout most of the Southland estate will be invaluable to the new owner come harvest.”

The Southland forests comprise:

• Seaward Bush, 87.45ha outside Invercargill. The net stocked area of 73.27ha is mostly radiata pine.
• Warren Conway, 122.89ha northeast of Invercargill. The net stocked area of 85.57ha was mostly established in 2014 along with 5.71ha in 1992.
• Alastair McKenzie, 835.46ha west of Dipton. Its net stocked area of 750.5ha is mostly pine.
• Christmas, 34.4ha east of Dipton. It is in cutover state, awaiting replanting, along with 1.61ha of pine established in 2001.
• Anderson, 32.94ha north of Christmas. Its net stocked area of 25.74ha is mostly pine established between 1994 and 1999, plus a small area of macrocarpa in 1997.
• Cam McCulloch, 134.04ha near Mossburn. It comprises 78ha of pine established between 1994 and 1999, and 22.48ha planted in 2019. Plus 5ha of douglas fir planted in 1993.
• Dunrobin, 630.26ha south of Mossburn with extensive roading and infrastructure. Its net stocked area of 480.62ha is mainly pine and douglas fir, with a further 21.33ha awaiting replanting.
• Monowai, 288.2ha on the edge of the Waiau River. Its net stocked area of 190.03ha is mostly pine with some douglas fir and macrocarpa.
• Whare Creek, 276.56ha south of Manapouri. Its net stocked area of 233.38ha is mostly pine established from 1999 to 2016.
  
  The Otago forests comprise:
• Les Pullar, 242.09ha on hills above the Tokomairiro River between Balclutha and Milton. Its net stocked area of 228ha is planted solely in pine, established between 1997-1999 and 2015.
• Mount Trotter, 584.81ha 32km north of Dunedin. Its net stocked area of 553.31ha is planted solely in pine, established between 2012 and 2014.
• Chinook, 118.68ha east of Mount Trotter. Its net stocked area of 109.37ha is planted solely in pine established in 1997.
  
  

The Nelson/Marlborough forests comprise:

• Mangles, 137.99ha on Mangles Valley Rd at Tutaki. It comprises 107.08ha of pine, douglas fir and some minor species.
• Tapawera, 73.34ha established exclusively with radiata pine in 2000. It has a net stocked area of 55.77ha.

The estate has 1,300.32ha of post-1989 registered forest under the Emissions Trading Scheme. The vendor will repay the liability for all previously sold carbon credits to ensure the buyer incurs no financial liability if the estate is replanted in perpetuity.

The Southland and Otago forests offer access to export markets from Bluff and Port Chalmers.