Riverbed part of proposed $8m farm sale

Tukituki river at Red Bridge near Havelock North. Photograph by Paul Taylor.

A decision is still pending on the $8million sale of a 487ha farm near Havelock North because it includes the Tukituki Riverbed, which may fall into government hands.

Germany-based businessman Robert Haselsteiner applied to the Overseas Investment Office (OIO) for approval last September 2. Because the title includes part of the Tukituki Riverbed, it requires extra deliberation. The farm has 2km of river frontage.

OIO manager Annelies McClure said the office had an agreement in principle with Ngati Kahungunu ki Heretaunga-Tamatea "which provides for consultation processes with Ngati Kahungunu should the Tukituki Riverbed ever be in Crown ownership".

"The Overseas Investment Act 2005 requires the owner to offer that land back to the Crown," she said. "The Crown can decide whether to accept the offer once the purchase has taken place.

"The OIO is aware of Ngati Kahungunu's rights in relation to the Tukituki River ... Because the requirement to consult with the iwi in future is guaranteed - if the riverbed ever becomes Crown owned - there is no need for the OIO to consult with the iwi when assessing this application."

Neighbour Bruno Chambers said his great-great-grandfather, John Chambers, "wrangled" the riverbed title along Matangi Rd in the 19th century. "He had come from Australia and was concerned about water rights for the farm," he said.

The farm, part of the original Chambers landholding, was advertised as having two houses, farming infrastructure and capable of running 5000 stock units.

Mr Haselsteiner is a co-founder, with Marcus Wolsdorf, of Interhyp, an internet-based mortgage distributor that went public in 2005. Interhyp was taken over by ING Direct in 2008, valuing the company at more than 400million ($633 million).

In 2011 the two founded investment firm HW Capital, which specialised in investments in financial services businesses.

Valuer Mark Morice said the property appeared to attract a "considerable premium" over and above its economic value as a farm because of its proximity to Havelock North and its scenic qualities.