| Decision | Consent granted Section 12(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision maker | Toitū Te Whenua Land Information New Zealand |
| Decision date | 24 July 2023 |
| Pathway | Sensitive land – Farm land benefit test |
| Investment | Acquisition of a leasehold interest in 12.9464 ha of land located at 440 Old Renwick Road, Rapaura, Marlborough |
| Consideration | $1,265,000 and rental $11,000 + GST per annum |
| Applicant | Cloudy Bay Vineyards Limited France 66% United Kingdom 34% |
| Vendor | Kesteven Farm Limited New Zealand 100% |
| Background | The Applicant is an established New Zealand winemaker, well-known for its Sauvignon Blanc wine which represents approximately 80% of its annual production of which 98% is exported. Cloudy Bay is ultimately 66% owned by LVMH Moёt Hennessy Louis Vuitton SA, a multinational luxury brand conglomerate, and 34% owned by Diageo plc, a United-Kingdom based alcohol beverage company. The Applicant seeks to acquire the Land and add 0.6 hectares of Sauvignon Blanc vines to extend the present vineyard area to 12.06 hectares. The Applicant also plans to increase investment in the Land by purchasing new stainless steel tanks, a frost fan and other vineyard equipment. The main benefits to New Zealand are likely to include additional capital for development purposes, increased export receipts (premium price for its wine distributed through its luxury goods distribution network) and increased jobs. Consent was granted as the Applicants have met the investor test criterion and the benefit likely to occur as a result of the investment will result in benefit to New Zealand. |
| More information | Catherine Reid Catherine Reid, Barrister |
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