DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date7 July 2011
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the units of McIntosh Dairies Limited Partnership which owns or controls a freehold interest in 220.6796 hectares of land at 369 McIntosh Road, Otautau.
Consideration$6,500,000
ApplicantNMP Farm Investment GmbH and PP1 Agrar Ozeanien GmbH
Aquila AgrarINVEST III GmbH & Co. KG and PP1 Agrar Ozeanien Investitions GmbH & Co. KG, Germany (100.0%)
VendorTerraces Dairy Limited
Australian Public (91.6608%)
New Zealand Public (4.3296%)
Various overseas persons (3.9996%)
Vivian James Andrew, New Zealand (0.005%)
Sandra Jean Andrew, New Zealand (0.005%)
Background

The Applicant intends to improve the performance and profitability of the property with extensive drainage and effluent development, as well as upgrading of the housing and cowshed. This is likely to result in a premium dairy farm business with increased production, improved cashflow and profitability and potential for future capital value 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)(iv) – Greater productivity
17(2)(a)(v) – Additional investment for development
17(2)(a)(vi) – Increased processing of primary products
17(2)(b) – Enhanced Indigenous Vegetation/Fauna
17(2)(c) – Enhanced habitats
17(2)(e) – Walking Access
17(2)(f) – Offer to sell riverbed to the Crown

Overseas Investment Regulations 2005
28(i) – Economic Interests
28(j) – Mitigating Factor

More informationNicholas Russell
Chen Palmer
P O Box 2160
WELLINGTON 6015