Overseas investment decision for case 200810056 - Negociants New Zealand Limited | Toitū Te Whenua

Applicant: Negociants New Zealand Limited
Case number(s): 200810056
Decision date: 9 Jun 2008
Type: Decision

Decision number	200810056
Application number	200810040
Date	10 June 2008
Offeror/applicant	Negociants New Zealand Limited
Ultimate applicant beneficial ownership	100 percent - Australia, Samuel Smith & Son Pty Limited
Beneficial overseas ownership
- Asset current	0 percent
- Asset proposed	100 percent
- Share current	N/A
- Share proposed	N/A
Offeree(s)/seller(s)	Cheshire Terraces Trust 34 percent - New Zealand, Pilbrow (Donald Raymond) 33 percent - New Zealand, Slooten (Simon Cornelis) 33 percent - New Zealand, Slooten (Valmai Ethel)
Business activities	Agriculture - Horticulture & Fruit - Viticulture
Details of land involved	13.962 hectares of freehold situated at 52 Lanark Lane, Renwick, Marlborough being CT MB5C/1198 (Marlborough Registry).
Regions involved	Nelson/Marlborough
Total consideration	$4,106,250
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. Background: The Applicant's newly opened Nautilus Estate Winery in Renwick produces sauvignon blanc, chardonnay, and pinot noir wines from grapes grown at vineyards throughout the Marlborough region and the South Island. The Land is located near to Nautilus Estate and is currently used as a sauvignon blanc vineyard. Rationale: The Applicant wants to grow its own grapes rather than purchase grapes from other vineyards. The Applicant estimates that by growing its own sauvignon blanc grapes on the land it will save between 5 -10% per litre on the costs of producing a vintage. The grapes will be used to produce the Applicant's second tier Twin Islands Sauvignon Blanc brand for export. 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)(iv) - Greater efficiency or productivity s17(2)(a)(v) - Additional investment for development purposes. Overseas Investment Regulations 2005: r28(c) - Adversely affect New Zealand's image overseas r28(e) - Previous investments of benefit to New Zealand r28(g) - Enhance ongoing viability of other investments.
Contact	David McGregor Bell Gully P O Box 4199 AUCKLAND

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