Overseas investment decision for case 200920036 - Foley Family Wines, Inc

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the shares of The New Zealand Wine Fund Limited which owns or controls:

• a leasehold interest in 37.4100 hectares of land at Ugbrooke Rd and Redwood Pass Rd, Dashwood, Marlborough; and
• a freehold interest in 66.1346 hectares of land at Redwood Pass Rd, Dashwood, Marlborough; and
• a leasehold interest in 4.6134 hectares of land at 18 Causeway Rd, Waiheke Island; and
• a leasehold interest in 4.5148 hectares of land at 2 Donald Bruce Rd, Causeway Rd, Waiheke Island; and
• a leasehold interest in 5.0548 hectares of land at 198 Wilma Rd, Waiheke Island.

The Applicant is committed to making some of the best wines in the world. Since 1996, it has acquired a number of assets including vineyards, land and wineries. The Applicant continues to seek global opportunities that meet its investment criteria. The brands and products produced by NZ Wine Fund have been identified and recognised by the Applicant for their high quality which is the fundamental requirement for any investment made by it.

NZ Wine Fund is a substantial producer of Marlborough sauvignon blanc. It has quality brands in market segments that are very complementary to the Applicant’s wine business. The Applicant believes that, under its ownership, NZ Wine Fund will be able to access substantial opportunities to increase exports of its wines to the United States of America and elsewhere utilising the Applicant’s existing and planned distribution capabilities.

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

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(d) – Owner to undertake other significant investment
28(f) – Advance significant government policy or strategy