Figures released by the Overseas Investment Office (OIO) show that sales peaked in 2019 when 17 farms covering 17,793ha were purchased, but activity fell away this year.
Between January and November, the OIO approved eight sales encompassing 5390ha.
In 2017, three purchasers were approved covering 2577ha and just one in 2018 for 1148ha.
The increased activity by foreign forestry owners was enabled by a special forestry test policy, which was negotiated by NZ First as part of the coalition agreement with Labour.
The policy was designed to attract forestry investment by streamlining the investor approval process and reducing the hurdles they have to cross.
Information supplied by the OIO states that all applications to buy land was approved between 2017 and 2020.
Foreign buyers have not been the only forestry companies buying farmland, with local forest owners also active.
For example, last year Dunedin City Council’s City Forests bought two farms covering 650ha in total in South Otago.
The OIO data shows that when purchases by foreign companies of existing forestry blocks were included with sales of farmland, the Government approved 38 sales in 2019 and so far this year, the total was 20.
This compares with an average of 13 a year between 2006 and 2018.
In data for November, the OIO approved the sale of a Northland beef farm to a European-owned forestry company most of which will be planted over the next two winters.
Kauri Forestry has bought the 329ha farm at Maungatapere for an undisclosed amount and will plant 240ha in mostly radiata pine.
A further 40ha will be subdivided into lifestyle blocks with the balance roading, infrastructure and native bush.
Permission for the company, owned by Swiss (93%) and German (7%) interests, was granted under the Government’s special forestry test.
The Aquila Capital Timber Investment Fund (ACTIF), who represent predominantly Germany church funds, has been granted permission to buy the 2000ha Te Rata forestry block near Gisborne from an Australian company.
Of the 2000ha, about 1000ha is exotic forestry planting, 580ha is in native bush and subject to a QEII Trust covenant, and 400ha is either unplanted, roading or infrastructure.
This is the applicant’s first investment in New Zealand, but it has forestry investments in Scotland, Finland and Australia.
