The price paid by Ingka Investments – the investment arm of the Ingka group, the largest international franchise of Ikea stores – for a farm in southern Otago has not been revealed in the latest decisions of the Overseas Investment. Office (OIO).
Last month, Ingka Group announced that it had received approval from the OIO to purchase the 5,500 ha Wisp Hill station in the Owaka Valley for forestry development.
This week, Land Information New Zealand released the latest decisions of the OIO, but the value of the asset for the purchase was withheld under the Official Information Act.
The decision indicates that the applicants sought consent under the special forestry test.
The land was currently used as a sheep and cattle farm, as well as 53 ha of existing forest.
The applicants planned to establish and maintain approximately 2,982 ha of radiata pine plantation forest over five years.
About 110ha of agricultural land, including three dwellings, would be subdivided and sold.
The rest of the land would be unplanted, including native bush (1021 ha), potential regeneration land (892 ha), buffer lands, margins and riparian areas (323 ha), high elevation lands (130 ha) and roads and tracks (28 ha).
The land was a combination of class 3 (417.6 ha), class 4 (1054.3 ha), class 5 (2510.9 ha), class 6 (1538.5 ha), and class 7 land use capacity (16.5 ha).
The Land Use Capacity Classification is a system used in New Zealand since the 1950s to attempt to achieve sustainable development and management of land on farms.
Class 1 lands are the most versatile and can be used for a wide variety of land uses. Class 8 lands have a lot of physical limitations.