DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision Date16 May 2017
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 426.0581 hectares of land at 1062 Carleton Road, Oxford.
Consideration$18,250,000
ApplicantCraigmore Dairy II LP
European Public (58.8%)
German Public (23.5%)
United Kingdom Public (7.6641%)
Hong Kong (SAR) Public (4.2337%)
New Zealand Public (3.7025%)
Various overseas persons (2.0998%)
VendorMagnum Dairy Limited
Prattley Family, New Zealand (99.9%)
Michael Peter Prattley, New Zealand (0.05%)
Anne Marie Prattley, New Zealand (0.05%)
Background

The Applicant is part of the Craigmore Farming Group, which was founded by New Zealand citizen Forbes Elworthy. The land to be acquired through the Investment is currently farmed as a dairy farm and the Applicant intends to continue to operate it as such.

The Investment is likely to lead to increased milk production, increased processing of milk in New Zealand and increased export receipts for milk products. The Investment is also likely to lead to greater efficiency and productivity, the creation of a full-time equivalent job opportunity and additional capital expenditure on several development projects.

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) – Greater efficiency or productivity
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(j) – Oversight and participation by New Zealanders

More informationOliver Roberts
Duncan Cotterill
PO Box 5
CHRISTCHURCH 8140