Overseas investment decision for case 201020100 - Aquila AgrarINVEST Investitions GmbH, D/S Neuseeland Milchfarm Investitions GmbH and Alceda Star S.A.

The land is currently used as a sheep farm. It is proposed to convert the property to dairy, by constructing races, installing a water supply, subdividing the property and regrassing and fertilising it. The land adjoins a dairy farm owned by 46 South Limited Partnership which was the subject of an application for consent by the Aquila Group (Case No. 200920098). It is intended that the 46 South Limited Partnership will convert its 121 hectare runoff block, constructing a 54 bale rotary and subdividing and watering the block. The new 245 hectare dairy farm will be run as a joint venture by the two partnerships.

The Aquila Group seeks to create value for its investors by identifying farms that are below peak market prices, or are not being well farmed or managed, or are capable of expansion or growth, with the potential to increase profitability, production growth and improved management. The Applicant states that it is interested in a genuine return on its investments by adding value through additional capital expenditure, sound farming practices and good management.

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)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products