Foreign Investors Acquire South Otago Dairy Farms for Development

Consent has been granted for the sale of three adjoining dairy farms located in South Otago to an investment entity primarily owned by pension funds managed by the Washington State Investment Board. The transaction, approved by the Minister for Land Information and the Associate Minister of Finance, was documented in the overseas investment decisions released by Toitū Te Whenua Land Information New Zealand.

The buyer, NZ Dairy Holdings Trusco Pty Ltd, operates as a trustee for the NZ Dairy Holdings Trust and is linked to Australian agricultural investment firm Laguna Bay. This entity is set to acquire approximately 845 hectares in Clydevale, specifically along Clutha River Rd and Hall Rd, from Argyll Dairy Farm Ltd and McCallbraes Dairy Ltd. The specifics of the sale price were not disclosed due to the Official Information Act.

The approval includes plans for significant upgrades to the farms. The applicant intends to install five irrigation pivots covering nearly 300 hectares, enhance existing effluent reticulation from three milking sheds, and invest in additional farm infrastructure. This capital investment is expected to boost milk solids production and expand export opportunities.

The dairy farms will be leased to a New Zealand associate for ongoing operations. According to the ministers involved, the sale is projected to bring substantial benefits to New Zealand, including increased productivity, enhanced export receipts, and the creation of additional jobs. The ministers determined that the applicant met the investor test criteria, indicating that the investment is likely to benefit the New Zealand economy significantly.

Forestry Investment Also Approved

In a separate development, consent has been granted for Takahe Estate Ltd, which is majority owned by German interests, to acquire freehold interests in approximately 444 hectares in Tuapeka West Rd, also within the Clutha district. The sale price for this transaction was similarly withheld.

This acquisition is managed by New Forests Asset Management Pty Ltd and aims to invest in plantation forestry. The beneficial ownership consists of 14 overseas institutional investor entities. Companies under the management of New Forests Asset Management have previously made several forestry investments in New Zealand. The land, primarily composed of Pinus radiata, has a total productive area of 380 hectares, with harvesting planned for 2051.

These transactions highlight a growing trend of foreign investment in New Zealand’s agricultural and forestry sectors, promising to enhance productivity and economic growth while incorporating advanced management practices.