Canadian pension fund got clearance to buy dairy farm last month as Shanghai Pengxin turned down

Canada's Public Sector Pension Investment Board, whose New Zealand assets including 30 percent of the nation's biggest plantation forest, got approval to add to its dairy farm portfolio in September, the same month that the government shot down Shanghai Pengxin's $88 million purchase of Lochinver Station.

Emerald Dairy Farm, which is indirectly owned by the Canadian pension fund known as PSP Investments, was granted consent to buy a 280 hectare dairy farm near Oxford in North Canterbury by the Overseas Investment Office. PSP met the test of a substantial and identifiable benefit to New Zealand with undertakings to create jobs, lift production and boost export receipts. The OIO also took into account its previous investments in New Zealand.

PSP got approval last December to buy a 964 ha dairy farm near Mt Peel in Canterbury through a separate entity, Cumberland Dairy Farm, again meeting the test for jobs, production and exports. The price wasn't disclosed in either transaction.

In November last year, the OIO approved PSP's purchase of 18 commercial and retail properties for about $1 billion from AMP Capital Investors. That deal got over the line on job creation, development capital and the offer to gift a riverbed to the Crown.

PSP manages some C$112 billion in pension funds for Canada's public service, armed forces and mounties. Of its C$1.5 billion invested in natural resources, about 83 percent is in timberlands and 17 percent agriculture. Its increased investment in Kaingaroa and purchase of a portfolio of properties from AMP Capital Investors made Canada the biggest source of foreign investment in between January 2013 and December 2014, according to a KPMG survey of OIO data, putting China in second place.

Shanghai Pengxin is seeking a judicial review of the government's decision to decline its purchase of the 13,843 ha Lochinver Station, against advice from the OIO, on the basis the sale didn't provide enough benefit to New Zealand. It also withdrew from negotiations to buy 10 farms in Northland, citing five months of silence from the OIO.

(BusinessDesk)


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Calling the Xenophobic patriots to attention! Where are the howls of protest and dismay at yet more NZ land going overseas?

Oh, I forgot - Canadians are white skinned, aren't they?

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You have a short memory - Auckland Airport!!??

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I thought it was the Labor government that blocked that transaction so hardly in the near term. Also cannot recall the public having any real issue with the sale.

Can you explain why Ministers overruled Shanghai Pengjjin buy but approved this one when the OIO was fine with both.

Then we can measure future transactions for consistency.

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Cannot remember any howls of protests at that time. I owned Airport shares and it was the government who stopped the takeover. The xenophobic howlers were nowhere to be seen.

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http://m.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11537752 ... Faster airport bus trips on cards: ... Melbourne's ... https://en.wikipedia.org/wiki/Skybus_Super_Shuttle is taking the airport bus under its wing; ... new owners a consortium majority-owned by Canada's Ontario Pension Trust https://en.wikipedia.org/wiki/OPTrust ; Melbourne-based directors Michael Sewards and Adam Begg have hit the ground running ...

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I hate to say it but you have a valid point. Interesting the OIO has made the same decisions but the Ministers have not.

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On behalf of all Canadians, we're all really, really sorry for upsetting you nice Kiwi folks, eh. A Canadian-themed sorry hamper is on the way, complete with poutine, comfy toques and a Chesterfield. Again, we're really, really sorry...

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Yeah right. Prove it by allowing NZ dairy full access to TPP.

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There's a big difference between the sale of a 13,000 ha farm and a 900 ha farm. Its like comparing apples with appears. Scale is the problem, as can be seen with supermarkets and building supply companies etc in this country.

One suspects you have a racist problem, rather than those you are accusing.

Notwithstanding this, there's no honesty in politics. NZ inc has a massive income deficit, due to exported profits. The reality is by selling off more assets to overseas interests make no economic sense.

With the majority of the banking system in foreign hands, NZ inc no longer controls its own destiny. Foreign owners only care about their return in investment. This usually means reduced wages and less tax paid, because the politicians of today are too soft to challenge this lot.

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Nope - income deficit due to unsustainable budget deficits (read social welfare) and uncontrolled orgy of spending on housing, overseas goods and services funded by overseas debts - holiday homes, cars, luxury boats, mobile phones, overseas travel and of course, every conceivable manufactured products these days.

Started with that buffoon Muldoon who borrowed billions of dollars to pay for subsidies, superannuation and Think BIG until NZ was near bankruptcy.

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Oh the hypocrisy

https://www.saskatchewan.ca/government/news-and-media/2015/october/20/fa...

But then again NZ farm debt is due to double in the next 7 years, we will need to sell some silver or face problems in banking, especially as the same income is used to back the debt on overpriced houses in Auckland.

http://www.trademe.co.nz/browse/categoryattributesearchresults.aspx?cid=...

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The Saskatchewan Party has been in power for many years now. The NZ equivalent is Winston First. No surprise really.

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