Crafar farm deal goes to court

UBNZ Assets Holdings has gone to court to challenge the belief that Overseas Investment Office approval might be needed in order for it to purchase the remaining Crafar farms.

The company has a conditional sale agreement in place to buy 16 Crafar farms from receivers KordaMentha, subject to OIO approval.

The court proceedings were filed by UBNZ against KordaMentha and do not relate to the four Crafar farms purchased in February 2010.

KordaMentha spokesperson Brendon Gibson said UBNZ wanted a new agreement to say it did not need approval to buy the farms.

Gibson said UBNZ had decided to go to court seeking a declaration that it did not need approval, which it could then take back to the receivers.

If it was determined the company did not need approval, then the sale could be settled earlier, Gibson said.

Tenders close for the Crafar farms on June 23.

The OIO said it provided evidence during the two-hour hearing in Auckland High Court.

Under the Overseas Investment Act 2005, consent is required by overseas persons and associates of overseas persons who intend to purchase sensitive New Zealand land.

Justice Harrison expects to release his decision by next Friday.