Overseas investment decision for case 201110033 - Freshmax NZ Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in a further 25.1% of the ordinary shares of Agrilasia Farms Limited which owns or controls:

• a freehold interest in 56.4472 hectares of land at Omahu Road and Hill Road, Hastings; and
• a leasehold interest in 5.3460 hectares of land at 2 York Road, Hastings; and
• a leasehold interest in 15.0000 hectares of land at 419 Te Aute Road, Havelock North; and
• a leasehold interest in 5.6713 hectares of land at 263 Twyford Road, Hastings; and
• a leasehold interest in 13.8338 hectares of land at 265 Twyford Road, Hastings.

The Applicant currently owns 24.9% of a joint venture (Agrilasia Farms Limited) which owns the relevant land. The Applicant and Crasborn Limited (the other joint venture party) intend to further develop the land into a revitalised pip and stone fruit orchard.

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/Retention of jobs
17(2)(a)(ii) – New technology or business skills
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(a) – Consequential Benefits
28(c) – Affect image, trade or international relations
28(f) – Advance significant government policy or strategy
28(i) – Economic Interests
28(j) – Mitigating Factor