Waipuna Station covers about 1500ha in Central Hawke's Bay.
A large Central Hawke’s Bay sheep and beef farm has been sold to an overseas buyer, who plans to convert most of it into forestry.
The 1500ha Waipuna Station in Elsthorpe has been sold to Kauri Forestry Limited Partnership.
That partnership mainly represents a “multi-generational family business” from Switzerland and Germany.
The Overseas Investment Office (OIO) has granted consent for the purchase, citing benefits to New Zealand including capital expenditure, jobs and increased export receipts.
“The land is currently primarily used for sheep and beef grazing,” the OIO decision read, which added about 28ha was planted in various trees.
“The [new owner] will convert approximately 832 hectares of the land into a commercial plantation forest, predominantly pinus radiata, with planting scheduled to start in winter 2026.
“The [new owner] will harvest the crop of trees once matured and replant following harvest.”
A large gorge runs through the hilly property, meaning not all of it can be used for forestry.
The new owner plans to plant natives through that gorge to protect it.
According to realestate.co.nz, the sale at 664b Kairakau Rd was worth just over $13 million.
Waipuna New Zealand Ltd - a New Zealand company owned by Guy Coats - owned Waipuna Station and has sold the property.
Waipuna NZ declined to comment about the sale.
Craigmore Sustainables provides governance and management services for investors, and Kauri Forestry Limited Partnership was set up under the Craigmore group.
Craigmore CEO Che Charteris said Kauri Forestry mainly represented a “multi-generational family business” in Germany and Switzerland.
He said Kauri Forestry had invested in Hawke’s Bay previously by buying two older apple orchards off Mr Apple last year, totalling about 200ha in Ongaonga and Clive.
“It is part way through redeveloping those [orchards],” he said, which will remain as apple orchards and be upgraded.
As for the farm purchase, he said this was Kauri Forestry’s first forestry investment in Hawke’s Bay.
He said Kauri Forestry was interested in “the best use for the right land” and believed the station was best suited for forestry.
“It has a huge gorge through the guts of it that needs livestock excluded and natives planted through it,” he said.
“I don’t think too many people have a problem with this Waipuna block [going to forestry].
“But we are talking about changes to communities at a pace that some people are not happy with and I understand that, and that is why it is important not just to be talking about afforestation - we should be talking about investing in rural communities and that is why we really enjoy planting apple trees as well.”
He said Kauri Forestry’s investments in apple orchards in the region was creating jobs and supporting rural communities.
“Land use change is hard socially, and you have to be really careful about how fast you go, but there are benefits if you get it right.”
Kauri Forestry Limited Partnership has also been granted consent by the OIO to buy a 500ha Northland farm and convert it to forestry.
Hawke’s Bay Federated Farmers president Jim Galloway said the sale “has an impact” and would be a concern for the Elsthorpe community.
He said there were typically two or more families working a sizeable farm, and other industries also relied on farms.
“[That includes] the people they employ like the shearers and the vets and the fertiliser and trucks, there are a whole heap of industries around it that support a farm.”
However, he said he could understand people selling and, in many cases, people had been impacted by the likes of Cyclone Gabrielle.
“You certainly can’t say to the people that they have done a bad thing because they have to do the best thing by them, but it is hard work for communities.”
He also said some farms were more productive than others and could carry more livestock, and in turn support more workers.
The Waipuna Station mainly consists of land use capability (LUC) class 6 and class 7 - which is considered relatively rough land to farm. The worst LUC rating is class 8.
“It is where you see really nice land, the class 4 and 5 land, which is easy contour and you can drive a tractor across, that going into forestry is even more disappointing.”
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.