This is not a forestry investment. It's a passive commercial property investment — one that happens to sit on approx 1,290 hectares of prime South Otago land.
McCrostie Forest is offered as a Lessor's Interest only: you purchase the freehold land and step into the landlord's position under an existing long-term forestry lease held by Matariki Forests, one of New Zealand's largest and most established forestry owners. The trees, the operations, the costs — none of that is yours. You simply own the land and collect the rent.
The income is $331,500 + GST per annum, received net with no deductions. All outgoings,forest establishment, silviculture, roading maintenance, fire protection and harvesting costs aremet by the lessee. The lease runs until 30 March 2067, providing approximately 41 years of contracted income from a well regarded institutional counterparty.
Rent is reviewed every five years to market, calculated at 7½% of the “special government valuation” (i.e. the land value less the value of any improvements made by the lessee). Critically, rent cannot reduce between review periods — a built-in ratchet that protects you from any downward revaluation. The next review falls in March 2027.
There is no exposure to timber prices, log markets, harvest timing, carbon pricing risk or crop performance. Income growth tracks rural and forestry land values over time, not commodity cycles.
For investors seeking secure, land-value-linked income with a long known duration, a credible institutional tenant, and a genuinely hands-off ownership structure, McCrostie Forest is a rare and compelling offering.
Key Highlights:
- Approximately 1,290 hectares of freehold land
- Long-term forestry lease to Matariki Forests
- Current rent of $331,500 + GST per annum
- Lease secured through to 30 March 2067
- Five-yearly rent reviews, with rent unable to reduce
- Property outgoings paid by the lessee
- Secure, passive land-backed income with no forestry operational obligations
