Overseas investment decision for case 201410111 - Lianhua Trading Group Limited

• An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in a further 50.1% of the issued share capital of Prime Range Meats Limited, which owns or controls a freehold interest in approximately 17.5918 hectares of sensitive land at Switzer and Sussex Streets, West Plains, Invercargill;
• An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 81.5377 hectares of land at West Plains Road and Moore Road, Invercargill; and
• An overseas investment in sensitive land, being the Applicant's registration of a general security agreement and second ranking mortgage over approximately 17.5918 hectares of land at Switzer and Sussex Streets, West Plains, Invercargill.

A M Forde Family Trust and Tulloch Holding Trust
Tulloch family, New Zealand (50.0%)
Forde family, New Zealand (50.0%)

One Muff Too Tough Trust and Tulloch Property Trust
Tulloch family, New Zealand (50.0%)
Forde family, New Zealand (50.0%)

Existing shareholders of Prime Range Meats Limited other than Lianhua Trading Group Limited
Tulloch family, New Zealand (50.0%)
Forde family, New Zealand (50.0%)

The Applicant is increasing its shareholding in Prime Range Meats Limited, a meat processor in Invercargill. The Applicant will invest significant capital over the next five years to support and develop Prime Range Meats’ processing and exporting business, to provide meat for the Chinese market.

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) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market productivity/efficiency/competition
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(f) – Offer to sell riverbed to the Crown

Overseas Investment Regulations 2005
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy
28(g) – Enhance the viability of other investments.