$42m sale of farms to Chinese under consideration

The OIO is still investigating the 2010 sale of Motukawaiti Island apparently without official approval, to Chinese investors of St Morris NZ. Photo / Peter de Graaf

The Overseas Investment Office is believed to be still considering a $42 million purchase of seven Far North farms by a Chinese company.

On Tuesday the Advocate revealed that Hunan Dakang Pasture Farming had signed an agreement to buy farms totalling about 3600ha, all in the Kaikohe area and owned by Merv and Cara Pinny.

Like all purchases of "sensitive" land or high value businesses to foreign interests, the purchase will have to be approved by the Overseas Investment Office (OIO).

The OIO confirmed yesterday that Hunan Dakang Pasture Farming had applied for consent to buy the Pinny Farms but would not comment further.

Hunan Dakang does not yet own any farms in New Zealand. It is, however, 55 per cent owned by the Shanghai Pengxin Group, which has bought farms and office buildings in a series of multi-million-dollar deals.

The OIO is still investigating the 2010 sale of Motukawaiti Island apparently without official approval, to Chinese investors of St Morris NZ.

The island is back on the market for $12 million although the investigation into its original sale has yet to be completed.

Motukawaiti is 38ha in area and located in the Cavalli Islands near Matauri Bay. The island has a luxury lodge but it is not clear whether it is currently operating.