Overseas investment decision for case 200820037 - Gibbston Valley Station

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 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 are of good character and are not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
Gibbston Valley Station (GVS) is a wholly-owned subsidiary of High Definition Development LLC (formerly Gibbston Valley Lodge NZ LLC) which received consent to acquire 14.3472 hectares of land situated at Gibbston Valley, Central Otago. (refer A200520053/D20610021, A200520054/D200610025 and A200620119/D200620073). With effect from 1 January 2008, High Definition Development LLC transferred its interest in its land to GVS. This transfer was exempted by Regulation 33 of the Overseas Investment Regulations from the Overseas Investment Act requirement for consent. A luxury lodge is being constructed on a 4.3682 ha block, and the Glenlee vineyard and winery is operated on the 9.979 ha block.

The current sole shareholder of High Definition Development LLC holds approximately 47% of the shares in Gibbston Valley Wines Limited (GVWL). GWVL owns approximately 60 hectares of land near the land proposed to be acquired and operates a vineyard, cheesery and a restaurant.

Outline of the Investment:
GVS proposes to build 39 residential units, 30 golf course homes and 22 executive homes, an 18 hole golf course designed by Greg Turner (to be situated between the Kawarau River and the Gibbston Valley Highway), an equestrian riding centre, a retreat lodge and an artisans, crafts and farmers market complex on the land. Approximately 19.5 hectares of land will be developed as a vineyard, to be planted predominantly in Pinot Noir grapes.

Rationale for the Investment:

GVS intends to develop the land and the land recently transferred to it by High Definition Development LLC to meet the demand for recreational facilities and accommodation in the Queenstown district in a manner that complements the existing operations of GVWL.

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;
s17(2)(b) - Indigenous vegetation/fauna;
s17(2)(d) - Historic Heritage;
s17(2)(e) - Walking access;

Overseas Investment Regulations 2005
r28(e) - Previous investments;
r28(g) - Enhance the viability of other investments.