Consent has been granted for the sale of three adjoining South Otago dairy farms to an entity ultimately majority beneficially owned by pension funds administered by the Washington State Investment Board.
Overseas investment decisions released by Toitū Te Whenua Land Information New Zealand yesterday showed the Minister for Land Information and the Associate Minister of Finance had approved the transaction.
NZ Dairy Holdings Trusco Pty Ltd as a trustee for NZ Dairy Holdings Trust is an investment vehicle for Australian agricultural investment firm Laguna Bay.
It has been given approval to acquire a freehold interest in about 845ha in Clydevale in Clutha River Rd and Hall Rd, which is being sold by Argyll Dairy Farm Ltd and McCallbraes Dairy Ltd. The price was withheld under the Official Information Act.
The decision said the applicant intended to upgrade the farms by installing five irrigation pivots to cover almost 300ha, extending an existing effluent reticulation from three milking sheds and investing in other farm infrastructure.
The capital investment in irrigation was likely to result in greater production and export of milk solids. The applicant would lease the dairy farms to a New Zealand associate for continued operation.
The main benefits to New Zealand were the introduction of capital for development purposes, increased productivity, increased export receipts and creation of additional jobs.
Consent was granted as the ministers considered the applicant met the investor test criteria and the investment was likely to benefit New Zealand. Ministers also considered the economic benefits likely to occur were substantial.
• Consent has been granted under the special forestry test for Takahe Estate Ltd, which is German-majority owned, to acquire freehold interests in about 444ha in Tuapeka West Rd in the Clutha district. The price was also withheld.
The applicant is managed by New Forests Asset Management Pty Ltd for the purpose of investing in plantation forestry. The beneficial owners are 14 overseas institutional investor entities.
Companies managed by New Forests Asset Management have made several forestry investments in New Zealand. The latest acquisition is being sold by Cockleshell Road Forest Ltd.
The land has a total productive area of 380ha, almost all of which is in Pinus radiata. The applicant intends to continue using the land for production forestry and harvesting is planned for 2051.
