Decision Summary - Coleridge Downs Limited

Decision number 200710038
Application number 200620067
Date 12 April 2007
Offeror/applicant Coleridge Downs Limited
Ultimate applicant beneficial ownership 48.08 percent - United States of America, Erdman (Calvin Pardee)
25.96 percent - United States of America, Erdman (Christian Pardee)
25.96 percent - United States of America, Erdman (Sumner Pardee)
Beneficial overseas ownership  
- Asset current 0 percent
- Asset proposed 100 percent
- Share current N/A
- Share proposed N/A
Offeree(s)/seller(s) Sage Properties Limited 100 percent - New Zealand, Palmer (Mark)
Business activities Agriculture - Grain, Sheep, Beef, Cattle - Mixed Farming
Details of land involved 1,285.2234 hectares of freehold situated at Dry Acheron Station, Coleridge Road, Rakaia Valley, Canterbury being CTs CB31F/997 and CB34C/77 (Canterbury Registry).
Regions involved Canterbury
Total consideration $7,000,000
Consent sought To acquire:
  1. an interest in land which, either alone or together with any associated land of that type, exceeds 0.4 hectares and is or includes land held for conservation purposes under the Conservation Act 1987; and
  2. an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area.
Rationale The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Dry Acheron Station (Dry Acheron) is a sheep, beef and deer farming operation situated in the Rakaia River valley. The Applicant proposes to farm Dry Acheron in conjunction with Coleridge Downs Station (Coleridge Downs) which is situated approximately 4 kilometres from Dry Acheron. The Applicant proposes to replace Dry Acheron's Merino sheep with Romney Texels, replace Angus Hereford cattle with Angus cattle and continue with the red deer.

The Applicant proposes to increase productivity and stock carrying capacity of Dry Acheron, particularly the hill country, by growing more pasture feed, improving subdivision and stock water and improving pasture quality. The acquisition of Dry Acheron provides an opportunity for Coleridge to complement and expand their existing farming operations.

The Applicant also proposes to implement the recommendations contained in an Ecological Report to protect ecological areas located on the land through conservation covenants under the Conservation Act 1987 and the Reserves Act 1977. Public walking access will also be provided to the ecological areas located on the land by a walking track to be created under section 8 of the New Zealand Walkways Act 1990.

The proposal is likely to result in the following benefits:
  1. the creation of new job opportunities in New Zealand;
  2. increased productivity in New Zealand;
  3. the introduction into New Zealand of development investment for development purposes;
  4. the protection of ecological areas contained on the land through the registration of conservation covenants; and
  5. the creation of public walking access to these ecological areas.
Contact Mark Tavendale
Goodman Steven Tavendale
P O Box 442
CHRISTCHURCH

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