Overseas investment decision for case 201020101 - Challenger Life Company Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 27.74% of the ordinary units of Challenger Wine Trust which owns or controls:

• a freehold interest in 360.7920 hectares of land at 1370 Matapiro Rd, Crownthorpe, Hawkes Bay; and
• a freehold interest in 200.5190 hectares of land at 1917 Redwood Pass Rd, Dashwood, Marlborough; and
• a freehold interest in 142.1080 hectares of land at Rarangi Vineyard, 53 Flaxmill Drive, Marshlands, Marlborough; and
• a freehold interest in 44.7681 hectares of land at 169 Gimblett Rd and 2145 SHW 50, Fernhill, Hawkes Bay.

The Applicant has applied for retrospective consent in respect of its current unit holding in excess of 25% in Challenger Wine Trust (CWT). In 2007, the Applicant increased its unit holding in CWT in excess of 25%. Since then the Applicant has further increased its unit holding to 27.74% through various market transactions.

The Challenger Wine Trust owns 16 vineyards in Australia and 4 in New Zealand. CWT leases the 4 New Zealand vineyards to Delegat's Wine Estate Limited.

The Applicant believes that its investment in CWT provides an exposure to a diversified portfolio of high quality well located vineyards that can generate predictable income returns and the potential for capital growth.

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)(iv) – Added market competition/productivity

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations