IKEA buys more farmland

European retailer Ikea has bought more Gisborne farmland. File picture

Overseas Investment Office confirms sale of sheep, beef and deer farm on Tiniroto Road

European retail giant IKEA has bought up more farmland here to transfer into forestry, the Overseas Investment Office has confirmed.

The latest approval involves acquisition of a freehold interest in approximately 954.6 hectares on Tiniroto Road, and follows last year’s controversial purchase of the Huiarua and Matanui stations.

“The applicants are two New Zealand incorporated companies who will acquire the land, and hold a forestry right over the land, respectively,” the latest published OIO decision states.

“The applicants are owned by Ingka Investments BV, the investment arm of Ingka Group, which is the largest franchisee of IKEA stores internationally.

“The land is currently in use as a sheep, beef and deer farm.

“The applicants plan to establish and maintain a total of approximately 688.6ha of rotation forest over the 2024/2025 planting seasons. The trees will be harvested after approximately 27 to 30 years, and replanting will occur following harvest.

“The applicants intend to subdivide and sell up to a maximum of 40.2ha of the land containing two residential dwellings, curtilage (land surrounding a farmhouse) and farmland.

“The remainder of the land will be unplanted, including native bush (66.9ha), buffer land, setbacks, riparian areas, roads and tracks.

“Consent was granted as the applicant has met the investor test criterion and the special forestry test criteria.”

The property has a listed RV of $8.18 million and a land value of $9.4m.

Ingka Investments owns about 250,000ha of “responsibly managed” forests in the United States, Romania, Estonia, Latvia and Lithuania., the company’s website states.

The company’s  strategy is to invest in forestry in countries relevant for the IKEA supply chain.

Last year it purchased 6113ha of farmland here despite strong local opposition.