| Decision | Consent Granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Date | 13 March 2017 |
| Investment | An overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in approximately 29.702 hectares of land at 454 Omihi Road, Waipara (“the Land”). |
| Consideration | $2,700,000 |
| Applicant | Koyama Wines Limited Izumi Sawada, Japan (94%) Yasuhiro Horii, Japan (5.5%) Takahiro Koyama, Japan (0.5%) |
| Vendor | Mountford Estate Limited Cornelis Gysbertus Zeestraten, New Zealand (100%) |
| Background | Since the Applicant was incorporated in 2013, the Applicant’s focus has been on making Pinot Noir and Riesling wines using grapes sourced from local growers in the Waipara Valley. Grapes have been purchased by the tonne from local vineyards in Waipara, and processed using leased winemaking equipment from a Waipara based winery. The Applicant has been making wine under the ‘Koyama Wines’ label. Currently, the majority of the Applicant’s wine sales are through exports to Japan, with a small amount of wine being sold to local Japanese restaurants and individuals in New Zealand. The Applicant has entered into an agreement for the sale and purchase of the Land with the Vendor. The Applicant has also entered into an interdependent agreement with Mountford Vin Waipara Limited for the purchase of the Mountford Estate business assets. The Applicant wishes to develop its winemaking business and to expand the scale of its existing wine production. Undertaking the Investment will enable the Applicant to make wines under the both the Mountford and Koyama Wines labels. Owning the vineyard and winery on the Land will enable the Applicant to have greater control over the grape growing and winemaking process than the Applicant’s current leasing arrangements allow. The Applicant intends to produce high quality wine aimed at the export market (particularly Japan). The Applicant also intends to provide accommodation and host dining functions on the Land. 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 Overseas Investment Regulations 2005 |
| More information | Caroline Mason Cavell Leitch PO Box 799 Christchurch |