Overseas investment decision for case 200810046 - Colebatch (Phillip Maxwell)

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the Applicant is of good character and not the kind of person 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 Moanui Station which is situated in close proximity to Te Hau Station (Refer to application200720112).

Mr Colebatch intends to grant a 9 year lease to Horizon Farming Limited (HFL), a New Zealand company, who will be responsible for the day to day operations of the land and who will carry out the proposed developments. The Applicant intends to operate Te Hau Station in conjunction with Moanui Station as soon as is practical.

Rationale for the Investment:
The farm has been underperforming compared to district and national averages, and the vendor is not in a position to invest the substantial capital expenditure required. Mr Colebatch believes that with prudent farm management, capital investment, and the introduction of better performing stock the farm can be more sustainably managed. The proposed acquisition of Te Hau Station and Moanui Station will provide Mr Colebatch with sufficient economies of scale to increase efficiency and productivity on the combined land.

Philosophically Mr Colebatch claims 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) - Increased efficiency and productivity;
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(a)(vi) - Increased processing of primary products;
s17(2)(c) - Indigenous vegetation and fauna; and
s17(2)(c) - Trout, salmon, wildlife and game.

Overseas Investment Regulations 2005
r28(a) - Consequential benefits; and
r28(f) - Give effect to Government policy.