Landcorp farm bidder applies to OIO

The Chinese bidder for Landcorp’s Jericho Station in Southland has applied to the Overseas Investment Office (OIO) for permission to buy the property, almost five months after his offer was accepted.

Controversy surrounds the sale because a well-known Southland farmer, Ed Pinckney, has also been in contention for the sheep and beef farm, but his offer was refused even though it was only about $200,000 less.

Landcorp agreed to the Chinese $8.7 million offer in June for the 1359-hectare farm near Manapouri, the first sale by the state-owned corporation to a foreigner.

The Chinese buyer is believed to be Wenchen Du, who is a director of Qianlong Farms, a company established in 2016. Its address is a lifestyle block in Arrowtown.

There is also a related company, Qianlong Australia, which was incorporated in 2016.

The OIO confirmed it had received an application for an overseas person to buy the station. The application was being assessed and it was unable to indicate when a decision would be made.

As part of an OIO application, a person selling sensitive land is required to provide information to the OIO on their marketing of the property, including information on alternative buyers.

Landcorp has forwarded details of Pinckney’s back-up offer to the OIO, which includes a detailed environment, social, development and operations plan.

The would-be Chinese buyer’s application may depend on the policy direction of the new government, with both Labour and NZ First opposed to some foreign ownership of land.

NZ First leader Winston Peters has also criticised the Jericho deal on the grounds that it represents an opportunity cost for Landcorp. If the unconditional offer had been invested immediately it would have generated about $26,000 a month in interest.