Overseas investment decision for case 201620003 - Chamois Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 49.7% of the shares of Craggy Range Vineyards Limited which owns or controls:

• a leasehold interest in 9.8210 hectares of land at 520 Old Renwick Road, Renwick-Mayfield; and
• a freehold interest in 142.8910 hectares of land at Mere Road, Fernhill; and
• a leasehold interest in 14.2165 hectares of land at 265 Parkhill Road, Haumoana; and
• a freehold interest in 14.4752 hectares of land at Waimarama Road, Waimarama - Te Mata; and
• a freehold interest in 166.9986 hectares of land at 491 & 497 Te Muna Road, Te Muna; and
• a freehold interest in 274.1708 hectares of land at Black Birch.

The underlying objective of the Applicant’s Investment is to effect an internal family restructure designed to improve the Applicant’s debt-equity mix in funding the Vendor (which it has done for some years by making significant previous investment). The Vendor has a long history in wine exporting and within the New Zealand wine industry.

Across two share acquisitions, the Investment will result in the Applicant owning 49.7% of the total shares of the Vendor once the transaction is complete. The Vendor will in turn have access to an additional NZ$126 million in capital to enable the Vendor to pursue some significant development plans.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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
28(a) – Consequential benefits
28(d) – Other significant investment
28(e) – Previous investments
28(g) – Ongoing viability of other investments
28(i) – Economic interests