DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision Date26 August 2016
InvestmentAn overseas investment in sensitive land, being Southern Pastures (Kowhai Farm) Limited Partnership’s acquisition of a freehold interest in approximately 252.1469 hectares of land at 479 Ardlui Road, Te Pirita.
Consideration$12,000,000
ApplicantSouthern Pastures Limited Partnership
Sweden (58.5%)
Luxembourg (22%)
New Zealand (2.5%)
Various (17%)
VendorDrenth Holdings Limited
Jan Hendrik Drenth, New Zealand (50%)
Janna Berendina Drenth, New Zealand (50%)
Background

The Applicant is the majority equity partner in Southern Pastures (Kowhai Farm) Limited Partnership. The Applicant’s intention is for Southern Pastures (Kowhai Farm) Limited Partnership to continue to farm the land as a dairy farm.

In particular, the Applicant intends that Southern Pastures (Kowhai Farm) Limited Partnership will:

  • increase the milking platform on the farm through investment in effluent disposal and other infrastructure; and
  • increase the herd size and the production of milk solids on the farm.

The farm will be incorporated into and operated as part of the Applicant’s South Canterbury cluster of dairy farms.

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) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market productivity or efficiency
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments

More informationSimon Peart
Chapman Tripp
PO Box 993
Wellington 6140