Overseas investment decision for case 200810049 - Dairy Farms Partnership

An overseas investment in sensitive land, being the Applicant's acquisition of:

1. a freehold interest in 588.2434 hectares of land situated at Wilson Road, Ranfurly, Otago; and
2. a leasehold interest in 1.2338 hectares of land situated at Wilson Road, Ranfurly, Otago.

The Applicant considers farm land an attractive asset class due to its expected returns and diversification benefits. The Applicant's particular interest in the New Zealand dairy industry stems from New Zealand's position as a leader in the global dairy industry and the existence of word-class cattle and bloodstock industries here.

The land is currently used for sheep and beef breeding and finishing. The Applicant wants to convert the farm to dairy. The size of Helenslea Farm means the operation will be significantly larger than the average for dairy farms in New Zealand and conversion from sheep and beef farming to dairy will allow more productive use of the land.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/Productivity
17(2)(a)(v) – Additional investment
17(2)(a)(vi) – Increased processing of primary products
17(2)(b) – Indigenous Vegetation/Fauna
17(2)(e) – Walking Access

Overseas Investment Regulations 2005
28(e) – Previous investments