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A large Hawke’s Bay sheep and beef farm damaged during Cyclone Gabrielle can now be sold to a new Italian owner who has plans to convert it into forestry, following a decision by the Overseas Investment Office.
Land Information NZ’s Overseas Investment Office (OIO) has granted approval fora 524ha farm on Glengarry Rd north of Rissington, known as Lucky Hill Farm, to be sold to an overseas buyer.
The McLean family and an associated entity, GRL Trustees Ltd, owned that property and are behind the sale.
The buyer is DXT Forestry Solutions, which is ultimately owned by an Italian family.
It is unclear if the sale has settled but the OIO decision means the sale can proceed.
“The land is currently used as a sheep and beef farm but sustained significant damage in Cyclone Gabrielle [in February 2023] and has become economically unviable,” an OIO decision read.
“The applicant intends to establish a commercial production forest on the land and will plant approximately 394ha of pinus radiata and redwoods.
“The main benefits to New Zealand were assessed as being increased capital expenditure and export receipts.”
The seller plans to retain an additional 35ha of land at the property, according to the OIO decision.
A DXT Forestry Solutions director declined to comment about the sale, referring Hawke’s Bay Today to another director who could not be reached for comment on Friday.
The farm will be converted to forestry. Photo / Warren Buckland
A GRL Trustees Ltd representative was also contacted for comment about the sale.
A real estate advertisement published earlier in the year provided further detail about the land.
“Lucky Hill Farm encompasses 524ha of bare land set in Hastings’ Glengarry district ... with some gullies, plantings, and areas of scrub, along with two sets of satellite sheep yards and natural water dams,” the advertisement read.
“Located within 30km of Napier city, the farm enjoys rural views back to Napier, excellent sealed road frontage, and is ideally located for ready access to the Pan Pac mill at Whirinaki and nearby Napier Port.
“Although Cyclone Gabrielle caused some slips and damage to fencing, properties of this size come to market only rarely, and Lucky Hill Farm presents a great opportunity with its multiple-use options.”
Another Hawke’s Bay sheep, beef and deer station covering about 1000ha, which also suffered significant damage in Cyclone Gabrielle, recently sold near Waipukurau.
Ingka Investments is the parent company of furniture giant Ikea and bought that farmland, known as Waikareao Station, to convert it to forestry.
Hawke’s Bay Federated Farmers president Jim Galloway told RNZ in early August it was not surprising some farms hit hard by the cyclone were selling to forestry.
“The cost, effort and energy to sort these repairs is massive, so some farmers - especially those who are later into their farming careers - might look at this as an option,” he told RNZ.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
