The Chinese company behind a bid to buy Lochinver Station is going to court to challenge the Government’s decision to block the sale.
Pure 100, a subsidiary of Shanghai Pengxin, will seek a judicial review of the Government ministers’ decision, claiming that the wrong test was applied when considering the bid under the Overseas Investment Act.
The 13,800ha property near Taupo is one of the country’s most valuable farms with a rateable value of more than $70 million.
Last month, ministers Paula Bennett and Louise Upston rejected the bid, estimated at about $70 million to $80 million, despite the Overseas Investment Office having recommended it go ahead.
Ms Bennett said the ministers did not believe there was enough benefit to New Zealand to pass the “substantial benefit” test.
And by doing so, they were the only ones to think that. Up to that point, the whole process had been getting green lights by passing all the regulations and legal hurdles required. I can’t think of a single commentator that hasn’t considered it a purely political decision. Read more »