Decision number200610075
Application number200610012
Date13 June 2006
Offeror/applicantLongstreth (Michael William and Patricia Ann) of United States of America
Ultimate applicant beneficial ownership100 percent - United States of America
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Smith (Glen Bruce and Susan Mary) of New Zealand
Business activitiesAgriculture - Horticulture & Fruit - Viticulture
Agriculture - Horticulture & Fruit - Floriculture/Nursery
Lifestyle Property
Details of land involved7.2534 hectares of freehold situated at 211 Rochfort Road, RD14, Havelock North being CT HBV2/150 (Hawkes Bay Registry).
Regions involvedGisborne/Hawkes Bay
Total consideration$990,001
Consent soughtTo acquire 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 for consent has been refused as it was not considered to be in the national interest.

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.

The Applicants propose to acquire the subject property and expand the current area of the land planted in grape vines and lavender. The existing vineyard comprises 0.5 hectares, planted 5-6 years ago, containing Merlot, Cabernet Sauvignon, and Sangiovasi vines which are either blended for processing by the vendor or sold to other wine makers. The Applicants propose to initially double the current production of the property by increasing the planted area of the vineyard from 0.5 hectares to 1 hectare and the lavender grove from 0.75 hectares to 1.5 hectares and in the medium term increase the production by more than double by utilising any other area of land that could be economically planted in grapes.

The Overseas Investment Office is not satisfied that the proposed benefits resulting from the proposed investment are likely to be substantial and identifiable.

ContactNeil Dent
Gifford Devine
PO Box 148
HASTINGS