Overseas investment decision for case 201110066 - Foley Family Wines Holdings, New Zealand Limited

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in 65.098 hectares of land at Ruakokoputuna Road, Ruakokoputuna, South Wairarapa; and
• a freehold interest in 8.559 hectares of land at 89-91 Martins Road, Martinborough; and
• a freehold interest in 17.33 hectares of land at Longbush Road, Longbush, South Wairarapa; and
• a leasehold interest in 37.1685 hectares of land at 50 Martins Road, Martinborough.

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 50.0% of the shares of McLeod Vineyard Limited which owns or controls a freehold interest in 6.647 hectares of land at 91 Puruatanga Road, Martinborough.

The Vendor is a grower and producer of premium and super premium New Zealand wine. The Vendor owns and leases sensitive land in the Wairarapa region and holds 50% of the shares in McLeod Vineyard Limited.

The Applicant considers that the Vendor has quality brands in market segments that are complementary to its business. It believes that under its ownership the business will be able to increase its exports to the United States and other countries utilising its distribution network and access capital to facilitate future expansion and growth.

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)(v) – Additional investment for development purposes
17(2)(f) – Offer to sell seabed/foreshore/riverbed to the Crown

Overseas Investment Regulations 2005
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(g) – Enhance the viability of other investments