Pengxin widens NZ farm portfolio, buying 13,800 hectare Lochinver Station
Aug. 1 (BusinessDesk) - Shanghai Pengxin Group is adding to its portfolio of New Zealand dairy assets with agreement to acquire the 13,800 hectare Lochinver Station near Taupo reportedly worth $70 million.
The purchase by Pengxin subsidiary Pure 100 Farm is subject to Overseas Investment Office approval and will then need clearance in China, the company said in a statement.
The OIO cleared Pengxin to purchase the 16 Crafar dairy farms and the company also owns 74 percent of Synlait Farm Holdings in the South Island, which supplies Synlait Milk. The company also has a supply and purchase agreement with Miraka for ultra-heat treated milk to target the Chinese market.
Pengxin “plans to secure operational synergies over time with this planned farm acquisition and some of its neighbouring North Island farms,” according to a statement released by a public relations agency.
According to an online Bayleys advertisment, Lochinver Station "features both exceptional scale and standard, currently operating as a profitable sheep and beef breeding and finishing station supplemented with dairy grazing. It is predominantly flat to easy hill country, ensuring the farm’s potential for a range of farming systems, including dairying, dairy support, stud, deer farming, cropping, sheep and beef finishing.".