The real estate industry of New Zealand was expected to boom because of investments being poured from the Chinese market. However, latest news confirmed that a $42 million farm deal was recently cancelled by a Chinese firm according to nzherald. According to the report, Dakang New Zealand Farm Group, a group controlled by Shanghai Pengxin that owns around $500 million in New Zealand assets and made the controversial $200 million purchase of the former Crafar Farms, cancelled an agreement to buy the 3300-hectare Pinny Farms.
The Government announced a new national strategy in order to attract investments to their regions. However, those said approaches were undermined because of the way how the Overseas Investment Office (OIO) handled Pinny Farms' application. Dover Samuels, Northland regional councillor and former Maori Affairs Minister, understands the importance of the deal and the necessity for real estate investment. He stated via nzherald his sentiments about what recently transpired between the Chinese investor and their government. Samuels stated that;
"We need this disincentive in investment like a bloody hole in the head. We put a lot of time and energy into marketing Northland as the place to invest. This is a region that really needs investment. And can I say we are very, very disappointed if in fact a bureaucracy has been responsible for the Chinese bailing out of this opportunity." He also added that, "I think that Government is paying lip service to its economic vision for Northland. It's a slap in the face when we see real opportunities for substantive investment fail."
Gary Romano , a Chief executive, clarified the real reason behind the cancellation of the deal. On his statement, he stated that;
"We lodged an application ... believing five months would be sufficient time to enable a rigorous and objective review of our plans for the farms, compared to the 70 working day guideline the OIO has for turning around applications," he said. "However, to date we have not received any advice that the OIO has considered the sale and/or made a recommendation to the ministers."
And according to nzherald Mr Romano said that the decision to cancel was partly based on the Lochinver Station purchase, which the Government vetoed last month.
