Overseas investment decision for case 200820012 - Ryton Station Limited

1. 448.8559 hectares of freehold situated at Harper Road, Lake Coleridge, Canterbury being CTs CB26A/564, CB620/51 and CB44C/718 (Canterbury Registry); and
2. 14,146.216 hectares of leasehold situated at Harper Road, Lake Coleridge, Canterbury being CTs CB529/90 and 72034 (Canterbury Registry).

To acquire:

1. an interest in land which, either alone or together with any associated land of that type, exceeds 0.4 hectares and is or includes land held for conservation purposes under the Conservation Act 1987; and
2. 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
3. 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); and
4. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that exceeds 0.4 hectares that is a road, that adjoins the sea or a lake.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individual with control of the Applicant has 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 the 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.

Outline of the Investment:
Ryton Station's current farming operation is relatively small, with the Station carrying only 6,000 merino sheep. Large parts of the property are either unable or incapable of being farmed, due to restrictions under a Land Improvement Agreement registered against titles to the property, or the extreme nature of the terrain. In its current state, the farm is barely an economic unit and farming revenues are poorly diversified and mostly reliant on the sale of wool. The farm supplements its revenues with a small tourist operation.

Rationale for the Investment:
The Applicant wishes to make a long term investment in an operating farm property in New Zealand. The Applicant's shareholder wishes ultimately to spend more time in New Zealand, with a view to possibly living permanently in New Zealand.

The Applicant proposes to enhance the Ryton Station's farm operation through the investment of additional capital and by changing current farming practices. The Applicant also proposes to implement the recommendations contained in an ecological report prepared in relation to the property, including the protection of wetlands and areas of indigenous forest located on the land, through the registration of conservation covenants under the Reserves Act 1977. The Applicant also proposes to discontinue the proposed Ryton Bay subdivision.

Public access will also be provided to the Ryton River, adjoining Department of Conservation lands, Lakes Coleridge, Ida and Catherine.

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:
Section 17(2)(a)(i) - the creation of new job opportunities in New Zealand;
Section 17(2)(a)(iii) - increased export receipts for New Zealand exporters;
Section 17(2)(a)(iv) - greater productivity in New Zealand;
Section 17(2)(a)(v) - the introduction into New Zealand of development investment for development purposes;
Section 17(2)(b) - the protection of existing areas of significant vegetation and significant habitats of indigenous fauna through the registration of conservation covenants; and
Section 17(2)(e) - the creation of mechanisms to secure public walking access over the land.