| Decision | Consent Granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 24 May 2019 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 16.038 hectares of land at 41 Jeffries Road, Rapaura (the Land). |
| Consideration | $4,400,000 |
| Applicant | Negociants New Zealand Limited Samuel Smith & Son Pty Limited, Australia (100.0%) |
| Vendor | William Hugh Crosse New Zealand (100%) |
| Background | The Applicant is a family-owned fine wine merchant. The Applicant has invested in New Zealand’s wine industry for over 30 years, during which it has benefitted New Zealand. The Applicant owns and operates six vineyards and two wineries in Marlborough (including Nautilus Estate Winery), and its business includes exporting New Zealand wines worldwide. The Applicant has a close relationship with the Land. Grapes from the Land have been grown for and supplied to the Nautilus Estate Winery for over 20 years under a grape supply contract, and are used to make two of its best-selling wines (Nautilus Estate Marlborough Sauvignon Blanc and Opawa Marlborough Pinot Noir). The Applicant views this investment as critical to maintaining the flavour profile and volume of its award-winning Sauvignon Blanc, and advises that the potential loss of this vineyard resource puts its ability to meet the growing demand for this wine at significant risk. The Applicant requires the Land for certainty of grape supply, and will re-develop a portion of it to expand the area planted in Sauvignon Blanc grapes. The investment is likely to increase jobs, export receipts, and processing of primary products (being three factors of high relative importance under the current Ministerial Directive), as well as benefitting New Zealand under other factors in the Act. |
| More information | Glenn Shewan Bell Gully PO Box 4199 AUCKLAND 1140 |