Applicant
RF CorVal NZ Pty Ltd (as trustee for RF CorVal NZ Sub Trust 2 and RF CorVal NZ Sub Trust 3)
Case number(s)
202200518
Decision date
Type
Decision
Decision

Consent granted
Section 12(1)(a) Overseas Investment Act 2005
Decision maker Toitū Te Whenua Land Information New Zealand
Decision date 26 June 2023
Pathway(s) Sensitive land (Farm land benefit test)
Investment An overseas investment in sensitive land being the Applicant’s acquisition of freehold interests in approximately:
  1. 34.0989 hectares of land located at 13 Matanaka Drive, Waikouaiti, Otago;
  2. 49.5982 hectares of land located at 157 McKerrow Road, Waianakarua, Otago;
  3. 14.1641 hectares of land located at 91, 107 and 109 Rangiotu Road, Himatangi;
  4. 4.9630 hectares of land at 973-975 Camerons Line, Aorangi;
  5. 213.4773 hectares of land at 1403 and 1541 Horse Range Road and 26 Haven Street, Hillgrove, Otago (the Hillgrove Site);
  6. 62.7846 hectares of land at 35 and 69 Pilbrow Road, Glenpark, Otago;
  7. 106.27161 hectares of land at 64 Old Road, Orini, South Auckland (the Orini Site);
  8. 7.1603 hectares of land at 328 Oxford Road, Fernside, Canterbury; and
  9. 159.2310 hectares of land at 116 Huirimu Road, Te Awamutu (the Huirimu Site), 
collectively referred to as ‘the Land’.
Consideration $78,900,000
Applicant

RF CorVal NZ Pty Ltd (as trustee for RF CorVal NZ Sub Trust 2 and RF CorVal NZ Sub Trust 3)
Australia (97.5%)
Various (2.5%)
Vendor Mainland Poultry Limited and certain of its wholly owned subsidiaries, being Mainland Poultry Canterbury Limited, Natural Chicken Company Limited and Mainland Poultry Investments No. 3 Limited
New Zealand (27.71%)
United States (20.87%)
United Kingdom (10.40%
Cayman Islands (8.51%)
Various (32.51%)
Background

The Applicant is an Australian proprietary company (as trustee for two New Zealand sub trusts) and is 100% owned by CorVal Partners Limited, a specialist property fund manager incorporated in Australia.

The Applicant has been granted consent to acquire the Land and will lease the Land back to the Vendor (together with two non-sensitive properties) on separate triple net leases for initial terms of 30 years.

The Vendor is New Zealand’s largest egg producer and a major animal feed producer.  The Vendor wishes to release the capital tied up in the ownership of the Land to support a greater level of growth in the business.

The Land is currently used for all aspects of shell egg and animal feed production and distribution.  The Applicant intends to fund the next stage of the Vendor’s development of the Huirimu Site.  The investment is intended to create New Zealand’s largest free range egg laying facility with capacity for 240,000 laying hens and 80,000 rearing hens.

The main benefits to New Zealand are likely to include at least $12,000,000 in capital expenditure developing the Huirimu Site, the creation of 40 fulltime positions for an 18 month period, during the construction of the next phase of development on the Huirimu Site and additional environmental protections in respect of the Huirimu Site, the Hillgrove Site and the Orini Site.
More information

David Butler
Russell McVeagh
PO Box 8
Auckland 1140