Overseas investment decision for case 200810045 - Colebatch (Phillip Maxwell)

To acquire:

1. 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; and
2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area).

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicants have business experience and acumen relevant to the overseas investment, and that the Applicants have demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each of the Applicants is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Outline of the Investment:
The application for this acquisition is made concurrently with a separate application to purchase Te Hau Station which is situated in close proximity to Moanui Station (refer to Application 200720099).

Mr Colebatch intends to grant a lease back to the vendor. It is intended that Moanui Station will be operated in conjunction with Te Hau Station, as soon as is practical. The lease back will be for up to three years, at the end of which Mr Colebatch will lease the land to Horizon Farming Limited (HFL), a New Zealand company, which will be responsible for the day to day operations on the land. The lease of the land will be co-terminous with the Te Hau Station lease.

Rationale for the Investment:
Mr Colebatch believes that with prudent farm management, increased capital investment, and the use of performing stock the farm will be more sustainably managed. The proposed acquisition of Moanui Station and Te Hau Station will provide Mr Colebatch with sufficient economies of scale to increase efficiency and productivity on the combined land.

Philosophically Mr Colebatch believes that investment in long-term sustainable food production is a sensible investment strategy. The Applicant has selected Gisborne hill country for this investment as it is not coastal and it is not sought after for lifestyle purposes. The land is valued for its agricultural production.

The proposed investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Act 2005:
s17(2)(a)(i) - New job opportunities;
s17(2)(a)(iii) - Increased export receipts;
s17(2)(a)(iv) - Greater efficiency or productivity;
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(a)(vi) - Increased processing of primary products; and
s17(2)(c) - Trout, salmon, wildlife and game.

Overseas Investment Regulations 2005
r 28(a) - Consequential benefits; and
r 28(f) - Give effect to Government policy.