United States investors were the largest investors in our dairy land during 2013-2014, analysis by KPMG has revealed.
In the report on Overseas Investment in New Zealand’s Dairy Land, KPMG has analysed Foreign Direct Investment (FID) decisions by the Overseas Investment Office (OIO) for the 2013-2014 period.
It shows that the US was the largest investor in dairy land during that two-year period – accounting for 56% of the freehold hectares sold, and 26% of the consideration paid.
Justin Ensor, KPMG Deal Advisory Partner, says this highlights a common misconception about offshore investment in our dairy farms.
“There is a widespread perception that it’s a thin market – comprised of Chinese and Hong Kong investors - who are buying New Zealand dairy land. In reality, though, the market has a broad base of investors.”
China accounted for only one of the 24 transactions for dairy land approved by the Overseas Investment Office (OIO). That was the major acquisition of Synlait Farms, which accounted for 12.0% of hectares sold, and 21.3% of consideration paid.
Earlier this year, the Government rejected an $88 million bid from Pure 100 Farm Ltd - a subsidiary of Chinese-owned Shanghai Pengxin – because the benefits to New Zealand were not “substantial and identifiable.”
KPMG has prepared an analysis of Foreign Direct Investment (FDI) into the productive assets of our country, businesses and agriculture.
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