Overseas investment decision for case 201510050 - Flock Hill Manager LLC

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in the remaining 10% of the shares of Flock Hill Holdings, an unlimited incorporated company which owns or controls:

• a leasehold interest in approximately 13,988.6390 hectares of land at State Highway 73, Cass; and
• a freehold interest in approximately 28.6984 hectares of land at State Highway 73, Cass.

The Applicant currently intends to increase its interest in Flock Hill Holdings (being the holding company of Flock Hill Station), through buying out the 10% minority shareholders (the “Vendors”).

The Applicant’s buy-out of the Vendors is necessary for the Applicant to pursue a dramatically revised method of farming, which will necessitate substantial upfront capital expenditure.

The Applicant forecasts significant improvements in Flock Hill Station’s productive potential, through its plan to transform the farming operations from a livestock based business, to a pasture generating business.

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)(iv) – Added productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous vegetation/fauna
17(2)(c) – Trout, salmon, wildlife and game
17(2)(e) – Walking access

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