Freehold forest with upside

Large 478.2ha forest near Levin has its own quarry

A large freehold forest with a substantial area ready for immediate harvest is for sale near Levin.

Colliers International’s specialist forestry team has been exclusively appointed to market Kohitere Forest for sale by expressions of interest.

The 478.2ha landholding on the outskirts of Levin has a net stocked area of 343.7ha, predominantly planted with Radiata pine.

More than 45 per cent of the forest is aged 22 years or older, providing options for immediate harvest cashflow.

A telecommunications tower on the property provides rental income, while a quarry with a new resource consent provides quality roading material that can be used on-site or sold for profit.

Colliers International Forestry Director Warwick Searle, who is marketing the property with colleague Angus Robertson, says it is a superb opportunity to acquire a freehold forest with upside.

“Kohitere Forest is superbly located in the Horowhenua District, which is well known for producing high quality and high yielding forestry crops.

“The region has a multitude of forestry industry facilities and service providers, including forestry managers, contractors and sawmills.”

Situated on the outskirts of Levin, Kohitere Forest is only 5km from State Highway 1, providing excellent access.

It is 96km from the Lower North Island’s key export hub, Centreport, in Wellington. This distance will reduce by 3.5km when the new Transmission Gully motorway is completed in 2020.

“Coupled with the numerous domestic processing facilities in the region, this forest is ideally located to take advantage of domestic and international markets,” Searle says.

The forest is being sold by US-based investment manager The Rohatyn Group with forestry management services currently undertaken by FOMS, a local highly-regarded forest manager.

“It comprises a mixed-age crop with excellent form and branch size, complemented by the exceptional growth rates that the area has to offer.”

The net stocked area comprises 330.1ha of Pinus radiata and 13.6ha of Douglas-fir.

The forestry rights to 18.3ha of Pinus radiata and 1.8ha of Douglas-fir, planted on neighbouring land, are included in the sale.The primary forestry right expires at the earlier of the completion of harvest, or 31 December 2028. There is no obligation to replant.

Access to the forest is provided to the west via Gladstone Road and east of the forest via Denton Road.

Public access is permitted for a range of recreational activities including walking and running, mountain biking, horse riding and other organised public events.

Kohitere Forest has an on-site quarry which will significantly reduce costs associated with forestry road maintenance and establishment.

In August 2017 the current owner was granted a 15-year consent to excavate up to 5,000 cubic metres of rock. 

The quality of rock is excellent for roading material, providing a potential additional income stream for the forest’s new owner.

A telecommunications tower is located on the ridgeline of the forest, returning an annual rental stream to the forest owner.

Numerous domestic timber processers are located nearby in Levin, including Crighton Sawmill, ATS Timber and Mitchpine.

Other processors in the surrounding regions include Juken NZ and Kiwi Lumber in Wairarapa; Foxpine in Foxton; Kiwi Lumber and Goldpine in Dannevirke; the Tangiwai Sawmill and Kariori Pulp Mill in Tangiwai; and the Waverley Sawmill.

Export is via Centreport in Wellington, which handles some 10.5 million tonnes of freight annually. Forestry products from the Lower North Island are among the major cargoes handled at the port.

The forest is for sale by expressions of interest closing at 4pm NZT on Thursday 20 September. Shortlisted parties will be confirmed on Friday 28 September.

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