Decision Summary - Dairy Farms Partnership

Decision	Consent granted Section 12(a) Overseas Investment Act 2005
Decision date	9 October 2008
Investment	An overseas investment in sensitive land, being the Applicant's acquisition of: a freehold interest in 588.2434 hectares of land situated at Wilson Road, Ranfurly, Otago; and a leasehold interest in 1.2338 hectares of land situated at Wilson Road, Ranfurly, Otago.
Consideration	$5,363,750
Applicant	Dairy Farms Partnership United States of America (100.0%)
Vendor	Helenslea Limited New Zealand (100.0%)
Background	The Applicant considers farm land an attractive asset class due to its expected returns and diversification benefits. The Applicant's particular interest in the New Zealand dairy industry stems from New Zealand's position as a leader in the global dairy industry and the existence of word-class cattle and bloodstock industries here. The land is currently used for sheep and beef breeding and finishing. The Applicant wants to convert the farm to dairy. The size of Helenslea Farm means the operation will be significantly larger than the average for dairy farms in New Zealand and conversion from sheep and beef farming to dairy will allow more productive use of the land. The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors: Overseas Investment Act 2005 17(2)(a)(i) – Creation/Retention of jobs 17(2)(a)(iii) – Increased export receipts 17(2)(a)(iv) – Added market competition/Productivity 17(2)(a)(v) – Additional investment 17(2)(a)(vi) – Increased processing of primary products 17(2)(b) – Indigenous Vegetation/Fauna 17(2)(e) – Walking Access Overseas Investment Regulations 2005 28(e) – Previous investments
More information	Martin Thomson DLA Phillips Fox (Auckland) PO Box 160 AUCKLAND

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