Overseas investment decision for case 200810075 - Ryton Station Limited

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

• a crown pastoral lease in 10,396.4132 hectares of land at Glenthorne Station, Harper River Road, Lake Coleridge, Canterbury; and
• a freehold interest in 251.3665 hectares of land at Glenthorne Station, Harper River Road, Lake Coleridge, Canterbury; and
• a leasehold interest in 6.9206 hectares of land at Glenthorne Station, Harper River Road, Lake Coleridge, Canterbury.

The Applicant wishes to make a long-term investment in an operating farm property in New Zealand. The Applicant received Overseas Investment Act consent in July 2008 to acquire an adjoining property, Ryton Station. The Applicant's shareholder wishes ultimately to spend more time in New Zealand, with a view to possibly living permanently in New Zealand.

The Applicant proposes to enhance Glenthorne Station's farm operation through investment of capital. The targeted application of fertilizer, new stock water facilities and fencing will increase stock carrying capacity. The Applicant also proposes to protect large areas of the natural outstanding landscape on the property by restricting livestock grazing in those areas. The Applicant will also protect, by way of covenant, significant wetland areas on the property and provide access easements to ensure continued public walking access is available to the Wilberforce Valley, Harper and Avoca Valleys, including Lake Lilian.

The Applicant considers the ability to combine the operations of Ryton and Glenthorne Stations presents an exciting opportunity. Ryton is a difficult property to operate, given modest rainfalls. Glenthorne receives more rainfall and has more flat land for grazing livestock. The two properties may therefore complement each other to some extent, and give the ability to operate a farm in the 20,000 to 25,000 stock unit range.

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 satisified 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 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
17(2)(c) – Trout, salmon, wildlife and game
17(2)(d) – Historic Heritage
17(2)(e) – Walking Access

Overseas Investment Regulations 2005
28(a) – Consequential Benefits