Ikea investment company buys 12,900ha of Northland forests

Ingka Investments promises to continue allowing mountain biking in Baylys Forest in Kaipara. Photo / 123RF

The company behind Ikea retail is buying up part of Northland, by investing in 12,900ha of forestry.

Ingka Investments has announced it will buy 12,900ha across nine forests, mostly in the Northland region, including Baylys Forest in Kaipara.

The forests are being sold by Greenheart Group, a company incorporated in Bermuda and listed on the Hong Kong stock exchange.

The sale remains subject to Overseas Investment Office approval, plus shareholder and regulatory approvals on Greenheart Group’s side.

However, Ingka Investments already has plans for the forests, which include 10,000ha of pine and 2900ha of indigenous vegetation, most of which will be dedicated to conservation and other environmental purposes.

It includes Baylys Forest, which has the Kauri Coast Mountain Bike Park run by Kaipara Cycling Club. Ingka Investments will continue providing free public access for mountain biking and other outdoor activities, subject to seasonal safety restrictions.

The company will also retain existing club permits and work with the Department of Conservation on track development to balance public use with conservation goals.

Future investments and partnerships to enhance recreational infrastructure are also being explored, the company said.

Seasonal beehives on parts of the estate will also remain in place.

Local forestry company Northland Forest Managers will continue daily operations in the forests.

Forestry is important to Northland's economy and Ingka Investments will focus on producing sustainably grown timber. Photo / NZME

Forest manager Neil Geerkens said the partnership will deliver environmental, social and economic benefits for the region.

Ingka Investments is the investment arm of Ingka Group, the largest Ikea retailer, which represents about 90% of retail sales worldwide of the famed Swedish store.

Forestry is one of six areas it invests in, owning more than 332,000ha of forests in New Zealand, the Baltic states, Romania, the United States and Finland.

About 14% of its harvested wood goes back into Ikea products, through the open market.

Since entering New Zealand’s forestry sector in 2021, Ingka Investments has prioritised responsible wood supply, land regeneration and community benefits, said NZ forestland country manager Kelvin Meredith.

“Our focus is on the production of sustainably grown timber for the long-term.

“Growing this timber is supported by our commitment to responsible forest management ... People value recreational access to these forests, and we’re committed to ensuring these opportunities continue.”

The company is also looking at diversifying from Pinus radiata to selectively introducing alternative species, to improve overall forest health.

Ikea’s first New Zealand store is due to open in Auckland on December 4.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.