The owner, Invercargill-based Forest Growth Holdings Ltd, leases the land to Australian-based forestry investment company Wairarapa Estate Ltd, which has a forestry right lease in place for the next 60 years.
Annual income from the land rental is more than $216,000, plus GST, for the landowner.
Forest Growth Holdings Ltd is 67.9% owned by Invercargill-based IFS Forestry Group, with four investors based in Cromwell, Invercargill and Winton, while 32.1% is owned by Invercargill City Forests Ltd, a subsidiary of council-controlled organisation Invercargill City Holdings.
Invercargill City Forests has a 29.08% stake in IFS Forestry Group, the latter having a 100% stake in subsidiary company IFS Growth Ltd.
Bayleys Southland salesman Hayden McCallum, noting that only the land was for sale, not the plantations, said tenant Wairarapa Estate Ltd was a real estate investment firm specialising in sustainable forestry, land management, timber processing and conservation businesses.
"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 McCallum said.
Craigie Lea Forest comprises 1670ha and earns an annual rental of $125,000, Erindale Forest is 878ha and earns $53,500, Tinui Forest is 190ha and earns $14,938, Beehive Creek Forest is 168ha and earns $13,131 and Flat Point Forest is 154ha and earns $10,300, all plus GST.
All five blocks are freehold titles with annual rental reviews, any potential increases being linked to the consumer price index. They are for sale singly, in parts or all together.
The carbon credits earned by the forests would stay with Wairarapa Estate, Mr McCallum said.
