| Decision number | 200710034 |
|---|---|
| Application number | 200710036 |
| Date | 3 April 2007 |
| Offeror/applicant | Daesung Group Company RNR Engineering & Construction Co., Ltd of South Korea |
| Ultimate applicant beneficial ownership | 100 percent - South Korea |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 100 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | Kiwi Apple Tree Limited of New Zealand |
| Business activities | Agriculture - Horticulture & Fruit - Orchard |
| Details of land involved | 40.92 hectares of freehold situated at Allen Road, Pakowhai, Hawkes Bay being CTs HBJ1/438 and HBJ1/439 (Hawkes Bay Registry). |
| Regions involved | Gisborne/Hawkes Bay |
| Total consideration | $2,800,000 |
| Consent sought | To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale | The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987. Daesung Group Company RNR Engineering & Construction Co., Limited (Daesung) intends to acquire the land known as Ohuapai Orchard which comprises 23.83 hectares of apple orchard (Royal Gala, Braeburn, Fuji, Galaxy, Pacific Queen and Pacific Rose), 4.31 hectares of summer fruit (peaches and nectarines) and 4.95 hectares of kiwifruit (Hayward and Zespri Gold). Over a 3 to 5 year timeframe, Daesung intends to replace the current summer fruit plantings with further apple varieties and convert the orchard to a certified organic regime. Under a proposed management contract with NZ Orchard Management and Export Packhouse Company, Crasborn Group Limited, Daesung aims, over a 3-5 year period, to redevelop the orchard to make it more profitable through product line changes and a conversion to certified organic production primarily aimed at export markets. Daesung's businesses includes NEO (New Zealand East Asia Organics) to which this investment relates. Daesung is developing a retail chain of dedicated health and natural product stores throughout Korea. Daesung intends to develop a unique marketing position related to New Zealand's exported organic produce. The proposal is likely to result in the following benefits:
|
| Contact | Michael Stephens Stephens Lawyers PO Box 10-966 WELLINGTON |