Pine Forest Photo: 123RF
New Zealand Rural Land Company has completed the purchase of a $63 million forestry block in the North Island.
Located in Manawatū-Whanganui the estate comprises five individual properties with a total area of approximately 2400ha.
It is the first time the company has bought into forestry and the first time it has acquired land in the North Island. Until now it has had pastoral farms in Canterbury, Otago and Southland.
The entire estate has been leased to New Zealand Forest Leasing (NZFL) for 20 years.
New Zealand Rural Land Management co-founder and director Richard Milsom said the purchase was funded using a combination of debt and equity.
"The equity component has been funded from the proceeds of NZL's recent capital raise offer and from the proceeds of a $12m convertible note issued to an entity associated with NZFL, while the debt has been provided through an increase in borrowings from Rabobank of $25.2m.
This forestry estate acquisition means New Zealand Rural Land Company now owns 14,1101ha of land.