Overseas investment decision for case 201610107 - Stephen Diggle, VALIC NZ Limited and Diggle Holdings Limited

An overseas investment in sensitive land, being:

• Hrothgar NZ Agri Holdings Ltd’s acquisition of a freehold interest in approximately 22ha of land at 139 Simons Road, Maungatapere, Whangarei (Whatitiri Orchard);
• VALIC NZ Limited’s acquisition of a freehold interest in approximately 159ha of land at Far North Road, SH1, Northland (Awanui Orchard);
• VALIC NZ Limited’s acquisition of 100% of the shares in Hrothgar NZ Agri Holdings Ltd (which directly owns Whatitiri Orchard);
• the Hrothgar NZ Trust’s acquisition of an interest in Whatitiri and Awanui Orchards and the subsequent acquisition by Diggle Holdings Limited of any interest held by the Hrothgar NZ Trust in Whatitiri and Awanui Orchards.

The overseas investment involves two North Island orchards – Whatitiri Orchard and Awanui Orchard. The Applicant was granted consent to acquire the orchards in 2011 and 2015.

The Applicant intends to reorganise the structure under which it owns the orchards; no new land will be acquired and Stephen Diggle, Danielle Fraser and their family will continue to hold the major underlying beneficial interest in both orchards.

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) – Greater efficiency or productivity
17(2)(a)(v) – Additional investment for development purposes

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