Applicant
GMO Farm Land Optimization Fund, LP
Case number(s)
201420041
Decision date
Type
Decision
DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date16 December 2014
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 268 hectares of land located at 166 Guernsey Road, Waihopai Valley, Marlborough (Waihopai River Vineyard).
Consideration$51,874,000
ApplicantGMO Farm Land Optimization Fund, LP
United States Public (66.3%)
Swiss Public (13.26%)
United Kingdom Public (12.15%)
Various overseas persons (8.29%)
VendorMarisco Properties Limited
New Zealand (100%)
Background

The overseas investment is a financing transaction to enable the Vendor to secure funding to grow its winemaking business. The Applicant will lease the sensitive land back to the Vendor who will have the right to repurchase the land upon expiry of the lease after 5 or 12 years.

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) – Creation of Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Greater productivity 
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(f) – Offer to gift riverbed to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(d) – Owner to undertake other significant investment
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy
28(i) – Economic interests
28(j) – Oversight and participation by New Zealanders

More informationMartin Thomson/Pavanie Edirisuriya
DLA Phillips Fox
PO Box 160
AUCKLAND