Kiwi winning bidder for Jericho Station 'chuffed' but not anti foreign investment

Landcorp Farming, the state-owned farmer trading as Pamu Farms of New Zealand, went with Southland farmer Ed Pinckney after the preferred foreign buyer withdrew. Picture / NZME

The successful bidder for a state-owned Southland farm says he is not anti-foreign investment but "chuffed" his bid won the day.

Southland farmer Ed Pinckney said he learned this morning that he was the unconditional contract-holder for Jericho Station, a 1359ha sheep and beef station in Fiordland.

Landcorp Farming, the state-owned farmer trading as Pamu Farms of New Zealand, went with Pinckney after the preferred foreign buyer withdrew.

"I'm pretty chuffed, it's been a big year," Pinckney said.

"I'm not anti-foreign investment, I want to make that clear but I think it should be a level playing field, which is important," he said.

"What do I mean by that? In the small differences in price values offered, there's got to be a platform good that is fair for both sides. If anything I think there's definitely a place for it. If anything I think there's definitely a place for it."

Pinckney, who bid $8.5 million, was pipped by an $8.7m offer from Chinese buyer Qianlong Farms when the farm was put to market in late 2016.

"Pamu has been advised that the purchaser of Jericho farm has withdrawn their application from the Overseas Investment Office (OIO) and is therefore unable to complete the purchase of the farm," said Landcorp spokesman Simon King.

"As such we have proceeded to finalise the sale and purchase of the farm with the party that has made an unconditional back-up offer, which does not require OIO approval."

Lisa Barrett, OIO deputy chief executive policy and investment, declined to comment other than to confirm the applicant had withdrawn their application.

Pinckney did not know why Qianlong had withdrawn but speculated that the hurdles the company faced may have been too high.

He had big plans for the station, having had the past year to think about it.

"We've been in limbo for almost a year. I had no plan B. I liked to think I had a good chance and the place is worth fighting for. We just did all we could and kept our head low," Pinckney said.

"Condolences to the Chinese. It was never a thing about Chinese or Chinese investment. We just played our own game and ended up with it."

Pinckney said the farm had "huge potential".

"It's a pretty exciting place to get hold of. I think it's got a huge amount of potential to increase productivity and production."

He had just become engaged and was planning to move to Jericho, and out of his parents' home, where he had been living for some months.

Landcorp is New Zealand's biggest corporate farmer, managing 140 properties with its property plant and equipment valued at $1.29 billion as at June 30 last year.

- Additional reporting BusinessDesk