City Council-owned forests on the market

Friday 6 Mar 2020

Invercargill City Council-owned forests have hit the market after it was decided to sell them off last year. The 14 forests in Southland, Otago and Nelson/Marlborough have a combined area of 3599ha and a total productive area of 3,058ha, predominantly stocked with radiata pine.

The estate is being sold by Invercargill City Forests Limited – a subsidiary of Invercargill City Council's holding company, Invercargill City Holdings Limited. The decision to divest was made after a review of the holding company's investments in relation to the strategic objectives agreed with council.

In April, Holdco resolved that Invercargill City Forests Limited was not a good investment fit and would be sold. At the time, Holdco chairman Brian Wood said "this decision was not taken lightly but took into account the company's debt position, the forecasted reduction in harvesting revenue and the risks associated with owning forestry."

Colliers International's specialist forestry sales team has been appointed to market the estate for sale by way of a two-stage expressions of interest campaign. Forestry director Warwick Searle said the age profile of the estate was bimodal, with substantial areas planted between 1994 and 2000, plus a significant portion of the estate established from 2012 to 2019.

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Source: stuff.co.nz

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