Overseas investment decision for case 201120061 - Foley Family Wines Holdings, Inc.

Overseas investments in sensitive land, being acquisitions by the Applicant of rights or interests in up to 100% of the shares of Foley Family Wines Holdings, New Zealand Limited which owns or controls:

• a leasehold interest in 37.1685 hectares of land at 50 Martins Road, Martinborough; and
• a freehold interest in 8.5590 hectares of land at 89-91 Martins Road, Martinborough; and
• a freehold interest in 17.3300 hectares of land at Longbush Road, Longbush, Sth Wairarapa; and
• a freehold interest in 65.0980 hectares of land at Ruakokoputuna Road, Ruakokoputuna, South Wairarapa; and
• a leasehold interest in 37.4100 hectares of land at Ugbrooke Road & Redwood Pass Road, Dashwood, Marlborough; and
• a freehold interest in 6.6470 hectares of land at 91 Purutanga Road, Martinborough; and
• a freehold interest in 66.1346 hectares of land at Redwood Pass Road, Dashwood, Marlborough.

The Applicant owns a 92.52% share of FFW Holdings NZ. FFW Holdings NZ in turn owns 100% of Foley Family Wines Holdings, NZ Limited which owns or leases around 238 hectares of viticultural land in Marlborough and the Wairarapa. The original acquisition of this land by the Foley Family wines group was consented to in cases 200920036 and 201110066.

The Applicant has been granted consent to increase its shareholding in FFW Holdings NZ from 92.52% to 100% in multiple transactions over a period of 5 years. Transactions which may occur under this consent include the acquisition of Wineinc Pty Limited’s 5.12% shareholding in FFW Holdings NZ (resulting from the unwinding of a cross-shareholding and cross-directorship arrangement).

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 Regulations 2005
28(e) – Previous investments
28(g) – Enhance the viability of other investments