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OIO fines forestry investors over $1m

The buyer of five forestry blocks used New Zealand-based family members to make the transactions. The Overseas Investment Office has stung overseas forestry investors with $1.38 million in fines for using New Zealand-based relatives to invest on their behalf. According to the regulator, five forestry blocks totalling 3600ha in Awakino, Ngāruawāhia, Awaroa, Paranui and Manganui were purchased by several companies for $12.8m. The purchasing companies, Smith Road Farm, Paranui Forest and 488 Manganui Road Farm, are all directed by Hamilton-based Jihai Hu and China-based Menglu Song. Smith Road Farm and Paranui Forest are ultimately owned by Songs Trustee Ltd, owned by Song; 488 Manganui Road Farm is owned by Hu.

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