Our News

12 October 2015
Uncertainty over length and outcome of OIO process halts sale of Northland farms

Dakang New Zealand Farm Group (55% owned by Shanghai Pengxin) and Pinny Farms (purchaser and vendor respectively) have confirmed that the Sale and PurchaseAgreement of seven dairy and three support farms in Northland has come to an end.

Making the announcement, Dakang CEO Gary Romano said the company entered into a Sale and Purchase agreement to buy the 3,300 hectares of land milking 3900 cows in January this year.

“We lodged an application with the Overseas Investment Office (OIO) in April 2015 believing five months would be sufficient time to enable a rigorous and objective review of our plans for the farms, compared to the 70 working day guideline the OIO has for turning around applications.

“However, to date we have had not received any advice that the OIO has considered the sale and/or made a recommendation to the Ministers.

“Our decision to end the agreement is somewhat based on our experience with Lochinver where the Sale and Purchase agreement had to be extended 11 times, each extension causing frustration and pain to the vendors, and uncertainty for everyone involved.

“We simply are not confident enough of a favourable outcome to warrant putting the Northland vendors through a similar experience.”

Gary Romano said “the purchase of the farms and significant further investment would have had a positive impact on both the local and wider New Zealand communities and we are very disappointed that this will now not happen.”

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