Overseas investment decision for case 200820009 - Springfields Partnership

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 to the Investment:
Springfields Partnership (Springfields) is a partnership between David Rudd Limited (75.1 percent share) and Nobilo Vintners Limited (Nobilo) (24.9 percent share). Springfields has completed a vineyard development in Marlborough comprising 44 plantable hectares. The partnership brings together the land held by David Rudd Limited and the vineyard development and viticultural capabilities of Nobilo Vintners Limited.

Nobilo currently has a variety of interests in New Zealand, including land utilised for the growing of grapes, and as wineries and production sites. In total it either owns or leases approximately 790 hectares of vineyards in New Zealand, predominantly in the Hawkes Bay, Marlborough and Auckland regions. Nobilo also sources grapes from contract growers from around 1,400 hectares in area.

Outline of the Investment:
Springfields proposes to acquire the land, which is adjacent to other properties currently owned by Springfields and Nobilo, to develop the land as a vineyard. The land contains approximately 77 plantable hectares, which will be planted in Sauvignon Blanc. The proposed development will provide Nobilo with an increased grape supply, which will allow it to continue to develop its export wine markets and enhance the reputation of New Zealand wine overseas. This is likely to result in significant increases in employment, processing of grapes and export levels.

Rationale for the Investment:
Nobilo, a wholly-owned subsidiary of Constellation New Zealand Limited, carries out a fully integrated viticulture business, which includes the growing and development of grapes, and the manufacture, importation, distribution and sale of red and white wine within New Zealand and, increasingly, for export markets. Nobilo advises that export growth has been constrained by grape supply. Nobilo proposes to secure additional grape supply and increased processing capacity.

The proposed overseas investment is 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) - Creation/retention of jobs;
s17(2)(a)(iii) - Increased export receipts;
s17(2)(a)(iv) - Added market competition, greater efficiency or productivity, or enhanced domestic services
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(a)(vi) - Increased processing of primary products.

Overseas Investment Regulations 2005:
r28(e) - Previous investments.