Ideal opportunity to establish a commercial forest at Kaipara Hills

Kaipara Hills web 02

140ha block of bare land for sale in northwest Auckland

A 140ha rural block for sale in northwest Auckland presents an ideal opportunity to establish a new commercial forest with significant carbon earning potential.

Kaipara Hills is a block of bare land that is currently used for pastoral grazing but was previously planted as a commercial forest.

The land was deforested prior to 2008 and is now classified as post-1989 land under the Emissions Trading Scheme (ETS).

A newly planted forest would classify as a land-use change, making the property eligible for the new ‘average’ carbon accounting method.

Warwick Searle, Forestry Director at Colliers International, says this would provide a new owner with a significant carbon earning opportunity.

“The land for sale is ideally suited for reforestation, given its altitude, contour, location and proximity to key processing destinations.

“There is already significant harvest infrastructure in place from the previous harvest, including roading and skid sites. The roads have been well maintained and are frequently used for farming operations.

“These attributes, combined with the site’s carbon earning potential, make it ideal to be replanted as a commercial forest.”

Kaipara Hills comprises a landholding of some 140ha, subject to survey, located off Kaipara Hills Road, about 4km from State Highway 16.

It is for sale by tender closing at 4pm on Thursday 12 December.

The property is within the Auckland region, only 70km from the CBD. It is also within 112km of Northland’s main centre, Whangarei.

Angus Robertson, Forestry Broker at Colliers International, says this gives the property excellent access to key forestry infrastructure.

“The Auckland and Northland regions are well known for producing high-quality, high-yielding forestry crops.

“As a result, both regions are rich in domestic processing facilities and have their own efficient export ports.

“The regions also enjoy strong forestry labour forces, including professional forestry managers and contractors.

“This makes Kaipara Hills a superb opportunity to establish a forest in an area that is well set up to support commercial forestry.”

Among the key processing destinations are:

  • Carter Holt Harvey, which has a laminated veneer timber plant at Marsden Point and a sawmill in Whangarei;
  • Marusumi, which operates a full log chipping facility in Whangarei;
  • Pinepac, which operates two Auckland sawmills, comprising a construction and outdoor timber plant in Whenuapai and a post and pile manufacturing plant in Kumeu;
  • Northpine, which operates a sawmill in Waipu, where radiata pine is sawn, kiln dried, gauged, stress tested, treated, strapped and wrapped;
  • Northsawn Lumber, which processes and treats radiata pine at Marsden Point;
  • Rosvall Sawmill in Whareoa, which is a modern sawmill specialising in cutting radiata pine, targeting clearwood and structural production.

In addition, there are two nearby ports for exporting raw and processed timber.

Northport at Marsden Point is New Zealand’s northernmost multipurpose port and the closest to most of New Zealand’s export log markets.

The Ports of Auckland handles a variety of breakbulk cargo, and containerised logs.

Searle says forestry is New Zealand’s third biggest export industry, after dairy and meat.

“The country has 1.7 million hectares of productive, sustainable plantation forest, about 90 per cent of which comprises radiata pine.

“As New Zealand transitions to a low-emissions economy, the important role that forests and trees play is growing.

“The government has increased its focus on forestry through the One Billion Trees programme, which provides direct grants to landowners to establish forests.”

Searle says the outlook for greater carbon earnings is positive.

“The new ‘average accounting’ method, introduced in January following a review of the ETS, essentially assumes the land will be in rotational forest in perpetuity.

“Participants will receive units as the carbon stock of their forest increases, until the forest reaches a level of carbon storage that represents the average carbon stock it will hold over the long term.

“Essentially the new carbon accounting method reforms increases the cashflow for new forestry plantings, by allowing more carbon to be traded at a lower risk.

“Kaipara Hills is eligible to benefit from the new carbon accounting method, significantly increasing the cashflow and carbon income for the successful purchaser.”


Related Experts
expert photo

Warwick Searle

Director

Auckland Forestry

Warwick has a business degree in Accountancy and Property along with almost a decade of experience in the New Zealand rural property market ensuring you receive professional, knowledgeable service from start to finish.  

Specializing in forestry sales and transacting the bulk of the on market forests in the last few years Warwick fully understands the NZ market from small woodlots through to large scale forest estates and how it can best work for you.

View expert
expert photo

Angus Robertson

Broker

Auckland Forestry

Angus has a strong finance background, this accompanied by his facilitation of some large forestry transactions  gives him an in depth understand of the NZ forestry market. Angus brings youth and enthusiasm to each transaction to ensure a comprehensive sales process with all avenues explored.

View expert