Overseas investment decision for case 201010040 - Dairy Farms Partnership

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in 88.5250 hectares of land at Patearoa, RD4, Ranfurly, Central Otago; and
• a freehold interest in 766.9754 hectares of land at Patearoa, RD4, Ranfurly, Central Otago; and
• a freehold interest in 905.3176 hectares of land at Patearoa, RD4, Ranfurly, Central Otago.

Consultant Management Services Limited (in receivership)
Rodney John Humphries and Trustee Management Limited, New Zealand (100.0%)

Cascade Capital Limited (in receivership and in liquidation)
Rodney John Humphries, Bruce Raymond Sheppard and Lynette Margaret Nicholson, New Zealand (33.334%)
Brookside Farm No 2 Limited and Practise Management Trustee Limited, New Zealand (33.333%)
Rodney John Humphries and Trustee Management Limited, New Zealand (33.333%)

Main Farm Limited (in receivership)
Rodney John Humphries, Bruce Raymond Sheppard and Lynette Margaret Nicholson, New Zealand (41.67%)
Brookside Farm No 2 Limited and Practise Management Trustee Limited, New Zealand (33.33%)
Rodney John Humphries and Trustee Management Limited, New Zealand (25.0%)

The Applicant's particular interest in the New Zealand dairy industry stems from New Zealand's position as a leader in the global dairy industry. The Applicant intends to integrate management of the land with its nearby Helenslea dairy farming operation.

The Applicant intends to improve the current dairy farming activities on the land through a development programme (involving improved irrigation and improved pasture 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
17(2)(b) – Indigenous Vegetation/Fauna

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments