DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date20 May 2011
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100.0% of the units of Glencairn Limited Partnership which owns or controls a freehold interest in 1401.1737 hectares of land at 141 Glencairn Rd, Dipton.
Consideration$33,000,000
ApplicantAquila AgrarINVEST Investitions GmbH, D/S Neuseeland Milchfarm Investitions GmbH and Alceda Star S.A.
Germany (100%)
VendorGlencairn Land Company Limited
New Zealand (100%)
Background

The relevant land is currently used as two separate dairy units. The Applicant proposes to convert the land into three dairy units and substantially increase the milking capacity through capital investment, sound farming practices and expert management.

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 for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(c) – Trout, salmon, wildlife and game

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(i) – Economic Interests
28(j) – Mitigating Factor

More informationNicholas Russell
Chen Palmer
P O Box 2160
WELLINGTON 6015