Overseas investment decision for case 201610084 - Cuilam Industry Limited

An overseas investment in sensitive land, being:

• the Applicant's acquisition of rights or interests in 100% of the shares of Linhua Trading Group Limited which owns or controls:
  • a freehold interest in approximately 21.6386 hectares of land at Switzer Street, Waikawa;
  • a freehold interest in approximately 38.2423 hectares of land at West Plains Road, New River Ferry-Waikiwi;
  • a freehold interest in approximately 54.1969 hectares of land at Moore Road; and
  • a freehold interest in approximately 0.0809 hectares of land at Bond Street, West Invercargill
• a right to take security, being a mortgage, over the Land in relation to loans made by the Applicant to Lianhua Trading Group Limited and to Prime Range Meats Limited, a subsidiary of Lianhua Trading Group Limited.

The overseas investment will provide access to the beef and lamb sector in New Zealand, allowing the applicant and parent company to have access to and supply and distribute high quality beef and lamb products in China.

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) – Increased efficiency/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products

Overseas Investment Regulations 2005
28(e) – Previous Investments