Golden Bay forestry opportunity with carbon credits
Two substantial second rotation pine forests and associated carbon credits are for sale in the tightly held Golden Bay area of Tasman.
The well-established forests, East Takaka and Skyfarm, provide excellent proximity to markets and have significant roading and harvest infrastructure in place.
They have a combined area of 254.5ha and a net stocked area of 188.8ha planted predominantly in mid-rotation radiata pine.
The two forests are being sold together, along with 8,424 associated pre-1990 emission units.
Colliers International has been exclusively appointed to sell the forests and carbon credits by way of a two-stage expression of interest campaign.
Forestry Director Warwick Searle is marketing the properties with colleague Angus Robertson.
“This is an exceptional opportunity to secure two mid-rotation forests located in a tightly held and highly desirable region,” says Searle.
“Tasman is well known for producing high-yielding and high-quality forestry crops. The climate is generally temperate and moist, providing very good growing conditions.
“The forests are positioned only 2km off State Highway 60, providing excellent access to both local and international markets.
“Numerous domestic processing facilities and the efficient export port in Nelson are all within 90km of the properties.
“The forests also have extensive infrastructure from the first rotation harvest, which will keep future roading rehabilitation costs to a minimum come the second harvest.
“All of these attributes make the East Takaka and Skyfarm forests an exceptional investment, with the added sweetener of thousands of carbon credits.”
Golden Bay is located in the South Island’s northwest corner and is a popular destination for both global and local tourists.
“With spectacular natural scenery including alpine valleys, tranquil fishing rivers and stunning golden beaches, this is an incredible place to own a property,” says Searle.
“The region is well known for its arts and crafts and sporting activities, with beautiful walks provided through both Abel Tasman National Park and Kahurangi National Park.”
East Takaka Forest is located at Uruwhenua, Golden Bay. It is accessed via East Takaka Road about 2km from SH60.
The forest has a gross area of 174.4ha and a net stocked area of 127.6ha, comprising predominantly radiata pine established between 2003 and 2006, with smaller sections of 2013 and 1975 plantings.
It includes a 22.3ha Department of Conservation forest that was harvested by the current owner in the first rotation. This crop has regenerated and a new owner could possibly negotiate a new agreement with DOC.
East Takaka Forest’s terrain is a mixture of rolling hills with steeper faces and gullies, which will require predominantly hauler and tethered ground-based systems to extract the timber.
The forest has been managed under a framing regime, with the majority of silvicultural requirements already completed.
The 2003 to 2006 stands have been thinned to between 512 to 541 stems per hectare, while the 2013 stand has been planted at a target of 1,000 stems per hectare.
The smaller Skyfarm Forest is located 2.5km north of East Takaka Forest. It is accessed from East Takaka Road via an established right of way through a neighbouring property.
The forest has a total area of 80.13ha and a net stocked area of 61.2ha, mostly comprising radiata pine established in 2010, along with a small amount of 1972 planting.
The steeper western side of the property will require hauler harvesting, while the flat and rolling areas on the eastern side will be suitable for ground-based extraction methods.
The forest has been planted to a target of 800 stems per hectare, with no thinning yet completed.
Both properties have significant rock resources, which will dramatically reduce the costs of future re-metaling of the roads.
Robertson says the Tasman Region offers a multitude of forestry industry facilities, including sawmills, as well an associated workforce of forestry managers and contractors.
“Domestic processers less than 90km from the properties for sale include Motueka Lumber, Prowood, Nelson Pine, Goldpine, CHH Wood Products, South Pine and XLAM.
“Also located within 90km is Port Nelson, a major deep-water commercial port facility.
“The port’s main log export markets are Japan and South Korea, with the Southern Chinese and Middle Eastern markets growing in the last few years.”
Further afield from the properties are Timberlink, Kaituna Sawmill and Port Picton, all of which are located in Marlborough.
Export logs are the main cargo handled at Port Picton’s deep-water berth at Waimahara Wharf.
Robertson says the Tasman Region is well serviced by domestic flights at Nelson Airport, 95 minutes’ drive from the forests, where a modern new terminal is currently under development.
Regular flights are operated by both Jetstar and Air New Zealand.
Colliers International is calling for expressions of interest on the forests, closing on Thursday 12 September, after which shortlisted parties will be invited to submit their best final binding offers.
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