$331,500 Net Annual Income — Zero Outgoings, Zero Operational Risk

McCrostie Forest presents a rare opportunity to acquire approximately 1,290ha of freehold forestry land at Taratu Road, Kaitangata, in South Otago. Held across twelve titles, the property has supported production forestry for close to 50 years and is currently in its second rotation of Radiata pine.

The property is offered as a Lessor’s Interest, with the purchaser acquiring the underlying freehold land and the benefit of the existing long-term forestry right and lease to Matariki Forests. The lease runs through to 30 March 2067 and currently returns $331,500 + GST per annum, with five-yearly rent reviews and the next review due 1 March 2027. Rent cannot reduce between review periods, while all property outgoings and forestry-related costs are met by the lessee.

This structure provides a genuinely passive, land-backed investment with a long-duration income stream and no direct exposure to harvest timing, log prices, forest establishment costs or carbon obligations. Beyond the current lease, the purchaser retains ownership of a substantial freehold landholding within the established Otago/Southland forestry region.

Located approximately 17km from Balclutha and 28km from Milton, McCrostie Forest is well positioned within an established processing and export network, including access to regional processors and Port Chalmers. The combination of scale, secure rental income and long-term ownership of proven forestry land makes McCrostie Forest a distinctive investment opportunity.

Key Features:

• 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
• All property outgoings paid by the lessee
• Secure, passive land-backed income with no forestry operational obligations
• Established South Otago forestry location with access to regional processors and export infrastructure